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Tag: homebuying

  • What Are Non-Disclosure States in Real Estate?

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    Key takeaways

    • Non-disclosure states limit public access to real estate sales data.
    • Home prices in these states are not publicly recorded, meaning buyers, sellers, and appraisers must rely on private data sources.
    • The policy protects privacy, influences property taxes, and reflects state-level traditions and policy preferences.
    • Home value estimates are still available through real estate professionals and platforms like Redfin, which use verified data sources.

    What does ‘non-disclosure’ mean?

    In most states, home sale prices become public record after closing. Anyone can look up a property’s sale history, helping buyers and sellers understand market trends.

    However, in non-disclosure states, sale prices are kept private. This means the amount a home sold for is not required to be reported to the public or listed in county property records. Instead, the information is shared only with parties involved in the transaction, such as the buyer, seller, and lender.

    This practice affects how market data is collected, analyzed, and used, especially for online pricing tools, appraisers, and property tax assessments.

    Why do some states practice non-disclosure?

    Privacy protections for property owners

    One of the main reasons states adopt non-disclosure laws is to protect homeowners’ privacy. Many sellers prefer to keep the financial details of their transactions confidential. This level of discretion can be especially appealing to high-profile individuals or anyone concerned about keeping personal financial data private.

    Preventing tax assessments based on sale prices

    In some areas, property taxes are calculated using assessed value rather than actual sale prices. Non-disclosure laws prevent counties from automatically increasing property taxes based on the latest sales, helping to maintain stable assessments for homeowners.

    Influence from real estate and business interests

    Industry groups sometimes advocate for non-disclosure policies to protect clients’ financial privacy and encourage investment. Real estate professionals may also support these rules as a way to preserve negotiation flexibility for both buyers and sellers.

    Tradition and state policy preferences

    In certain regions, non-disclosure has deep historical roots. These states often value limited government involvement and emphasize individual privacy. Over time, this has shaped policy decisions and preserved non-disclosure laws even as most other states moved toward full transparency.

    Which states are non-disclosed to this date?

    As of today, several states maintain non-disclosure policies for real estate transactions. These include:

    While these states do not require sale prices to be disclosed to the public, they still allow private sharing of transaction data for appraisal and mortgage purposes. Buyers and sellers can still access accurate pricing information through local real estate agents or appraisal professionals.

    Full-disclosure vs. partial-disclosure vs. non-disclosure states

     

    State Type Are Sale Prices Public? What Information Is Shared? Examples
    Full-Disclosure States Yes Sale prices, transfer details, and most transaction data are recorded and accessible through county records. California, Florida, Indiana, Alabama
    Partial-Disclosure States Sometimes Some transaction details are disclosed, but sale prices may remain private; property tax and ownership data remain public. Missouri, Montana (varies by county)
    Non-Disclosure States No Sale prices are not publicly recorded; buyers and sellers must rely on agents, MLS data, and appraisers for accurate pricing. Texas, Idaho, Wyoming, Alaska, Louisiana, New Mexico

     

    Full-disclosure states make sale prices easy to find, while partial-disclosure states share only select details. Non-disclosure states keep home prices private, which means buyers rely more on agents, appraisers, and MLS data to understand local market value. This variation in transparency can influence everything from pricing strategies to how confidently you compare homes in your area.

    What non-disclosure means for you

    If you live or plan to move to a non-disclosure state, expect less publicly available information about what homes have sold for in your neighborhood. This can make it more challenging to gauge fair market value or to compare properties on your own.

    This means relying more heavily on your agent’s local market expertise. Agents in non-disclosure states often have access to private listing data through the Multiple Listing Service (MLS).

    For sellers, pricing your home correctly becomes even more important. Without public comparables, setting an accurate list price depends on professional valuations and your agent’s understanding of local trends.

    For appraisers and investors, these rules add complexity but not impossibility. Reliable market estimates can still be developed using private data and verified transaction reports.

    Inaccurate or delayed property assessments, and how to get a reliable home value estimate

    Even though public sale data is limited, there are still several ways to determine a property’s value:

    • Work with a local real estate agent: Agents have access to MLS data and can provide a comparative market analysis (CMA) to help you understand true market value.
    • Request a professional appraisal: Licensed appraisers use private sales data and property condition to determine fair value.
    • Use online estimate tools: Platforms like Redfin Estimate combine proprietary listing data and regional trends to offer a near-accurate home value range, even in non-disclosure states.
    • Review county assessment records: While sale prices may not be available, property characteristics and assessed values can still provide insight into market trends.

    Hard-to-find neighborhood values and comps

    In non-disclosure areas, finding accurate neighborhood values and comparable sales can be challenging because sale prices aren’t publicly recorded. Without this data, creating a reliable comparative market analysis (CMA) becomes more difficult for both buyers and agents. 

    Instead of pulling public records, agents must rely on MLS data, private sales information, and their own local expertise to estimate a home’s value. This can make pricing less transparent and requires buyers to depend more heavily on professionals who understand the area and have access to verified data sources.

    How to find sale prices and estimate value in non-disclosure states

    In non-disclosure states, closed sale prices are not part of the public record, so you have to rely on the sources that do have access. Start by asking a local real estate agent for a Comparative Market Analysis (CMA), since MLS data typically includes actual sold prices and recent neighborhood comps. If you need a more formal opinion, you can hire a licensed appraiser or request a title company report because both often have access to non-public sale data and can provide a detailed valuation based on property-specific adjustments.

    To tighten your estimate further, layer in publicly available clues. Use the Redfin app to review past listing details, price histories, neighborhood sales trends, and market indicators such as the sale-to-list ratio. Combine these insights with tax assessments and online home value estimates to cross-check your range. By anchoring your estimate to reliable comp data and using Redfin’s market analytics to validate it, you can build a confident low, mid, and high value range even in a state where sale prices are not publicly disclosed.

    Texas is a non-disclosure state: What that means

    Texas is a non-disclosure state, which means the sales price of a home is not publicly recorded or shared with the general public. Unlike in disclosure states, only the buyer, seller, and their agents have access to the exact sale amount. Because this information isn’t available through public records, real estate professionals rely on MLS data, market trends, and verified sources to estimate property values. For buyers and sellers, this can make accurate pricing even more dependent on the expertise of local agents who understand neighborhood dynamics and comparable sales.

    Frequently asked questions

    1. What is a non-disclosure state in real estate?


    A non-disclosure state is one where home sale prices are not required to be reported to the public. This means sale amounts do not appear in county records or public databases, and only parties directly involved in the transaction, such as the buyer, seller, and lender, have access to that information.

    2. Why do some states keep home sale prices private?


    States maintain non-disclosure laws for reasons including homeowner privacy, stable property tax assessments, and limited government involvement in personal financial data. These policies often reflect long-standing traditions and preferences for privacy over transparency.

    3. How does non-disclosure affect homebuyers and sellers?

    Buyers may find it harder to research comparable sales or estimate a fair market price on their own. Sellers must rely more on local real estate professionals to price their homes accurately. Agents and appraisers with access to private MLS data play an essential role in these transactions.

    4. Can you still find out what homes sold for in non-disclosure states?


    While exact sale prices aren’t available to the public, agents and appraisers can access private sales data through MLS systems. Online tools like the Redfin Estimate also use verified data to provide close approximations of home values in these areas.

    5. How can I determine my home’s value in a non-disclosure state?


    The most accurate ways include working with a licensed real estate agent for a comparative market analysis, hiring a professional appraiser, and checking online home valuation tools that use proprietary data.

    6. Do non-disclosure laws affect property taxes?

    In many non-disclosure states, tax assessors use property characteristics, not sale prices, to determine assessed value. This can help stabilize property taxes but may occasionally result in assessments that differ from market value.

    7. What does it mean that Texas is a non-disclosure state? 

    Texas is considered a non-disclosure state because the final sales price of a property is not made public in county records. Only the buyer, seller, and their real estate agents are permitted to know the exact amount. 

    As a result, third parties — such as listing websites, appraisers, and the general public — cannot access official sale prices unless they’re voluntarily shared. This makes accurate valuations more reliant on MLS data and the expertise of local real estate professionals. 

    8. How many non-disclosure states are there in the U.S.?

    In the U.S., there are about 12 non-disclosure states, meaning these states do not require property sale prices to be made public. Because of this, real estate data is more limited, and market insights often rely on MLS information and local expertise. Let me know if you’d like me to list the states as well.

    Understanding non-disclosure in today’s real estate market

    Non-disclosure laws are designed to protect privacy and maintain local control over real estate data. While they limit public access to exact sale prices, they do not prevent buyers and sellers from making informed decisions.

    Working with a knowledgeable real estate agent can help bridge the information gap, ensuring you have the most accurate understanding of property values in your area. Whether you are buying, selling, or simply tracking your home’s worth, tools like Redfin Estimate make it easier to stay informed, even when sale prices aren’t publicly listed.

     

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    Jasica Usman

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  • Lowball Offer Explained: What Is It and How to Navigate

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    Lowball offer key takeaways:

    • A lowball offer is typically 10-30% below a home’s asking price and can be a smart strategy when based on market data and property condition.
    • Timing and research are essential—lowball offers work best when a home is overpriced, needs repairs, or has been on the market for a while.
    • Respectful negotiation matters; a well-reasoned offer and professional communication increase your chances of a positive response from the seller.

    If you’ve ever tried selling a sofa on Facebook Marketplace, you’ve probably received a lowball offer; someone proposing to pay far less than your asking price. The same concept exists in real estate, except the stakes are much higher. A lowball offer in real estate occurs when a buyer suggests a purchase price that’s significantly below the seller’s asking price.

    In today’s housing market, where affordability challenges many first-time homebuyers, understanding what a lowball offer means and when it’s appropriate can help you save money without offending a seller.

    Buying a home, making an offer, and navigating negotiations can feel overwhelming, especially for first-time buyers. But don’t worry; we’re here to help. This Redfin guide explains what a lowball offer is, when to make one, and how to approach the process respectfully and strategically.

    Table of Contents

    What is a lowball offer?

    Lowballing refers to the practice of making an offer below the asking price in hopes of negotiating a better deal. Typically, a lowball offer ranges from 10% to 30% below the listing price; however, this can vary based on factors such as market conditions, the home’s value and condition, and how long it has been on the market. 

    For example, in a seller’s market, where demand is high and inventory is limited, even a small discount might be perceived as a lowball offer. While this strategy can help buyers save money, it requires careful timing, thorough research, and a clear understanding of the seller’s situation.

    Pros of a lowball offer

    For buyers:
    A lowball offer can help you purchase a home for less than market value, which can be a major win for your budget. If accepted, you could save thousands of dollars or free up funds for renovations and repairs. Even when a seller does not take the initial offer, a well-reasoned lowball offer can open the door to negotiation; it signals genuine interest and gives both parties a chance to find common ground.

    For sellers:
    While it may feel discouraging, a lowball offer can still indicate buyer interest, especially in slower markets. Sometimes, an offer below the asking price can spark competition or encourage other buyers to act quickly. For sellers eager to close, such as those relocating or managing an estate sale, a lowball offer can result in a faster sale than waiting for a higher bid that may never come.

    Cons of a lowball offer

    For buyers:
    There are definite downsides to making a lowball offer. Submitting an extremely low offer can offend the seller or make you appear unserious, reducing your chances of negotiation. You also risk losing the home entirely if the seller rejects or ignores your offer. A low offer can sometimes result in less favorable terms, such as fewer seller concessions or less flexibility with closing dates. Additionally, if your offer is far below market value, it may damage your credibility, especially in a competitive market.

    For sellers:
    Receiving a lowball offer can feel personal or frustrating, particularly if there is an emotional attachment to the home. Engaging in negotiations with a buyer who starts too low can waste time or cause missed opportunities with other interested buyers. Even if the seller decides to counter, beginning from an extremely low point can prolong the negotiation process and delay the sale.

    a birds eye view of a real estate agent holding a clipboard of a housing floorplan and keys in one hand accepts a hundred dollar bill (signifying a lowball offer) from a person in a long dress in the other hand

    When should you make a lowball offer?

    A lowball offer can be a smart move when the numbers and circumstances are on your side. While it is not always the right strategy, there are several situations where it may work to your advantage:

    • The listing price is too high: You may feel the price is above market value, and sometimes you are right. Some sellers list homes higher than what local data supports, either due to emotional attachment or outdated pricing expectations. Working with a knowledgeable real estate agent can help you evaluate whether the market supports your position before submitting a lowball proposal.
    • The home needs updates or repairs: If a property shows noticeable wear and tear or deferred maintenance, a lowball offer may be reasonable to offset the cost of necessary upgrades. For example, if similar homes nearby have updated kitchens or roofs and this one does not, your agent can help justify a lower offer to reflect that difference.
    • The home has been sitting on the market: When a home has been listed for an extended period without offers, the seller may be more motivated and open to negotiation. If a property has been on the market for more than three months, it may indicate that the price is too high or that buyer interest has cooled.
    • The property is an estate sale or foreclosure: Estate sales and foreclosures often involve sellers who need to close quickly. These motivated sellers may be more open to a lowball offer if it helps them move forward sooner. Before making an offer in these cases, conduct proper research and consult your agent to ensure you understand the process and any legal or condition-related complexities.

    What not to do when making a lowball offer

    If you decide to submit a lowball offer, approach it carefully and respectfully. Even if it is rejected, a thoughtful approach can leave the door open for future negotiations.

    • Don’t make your offer too low: While every situation is different, offering more than 30% below the asking price is often too aggressive and may alienate the seller. An extremely low offer can offend them and prevent further discussion.
    • Don’t skip your research: Before submitting any offer, review comparable sales, current market trends, and the property’s condition. A well-researched lowball offer shows that you are serious and informed; an uninformed one can harm your credibility.
    • Don’t ignore the seller’s situation: Always consider the seller’s motivation. If you submit a lowball offer on a newly listed home or one with multiple offers, it is likely to backfire. Timing is key; wait until the listing has been on the market long enough to suggest flexibility.
    • Don’t overload your offer with demands: If you are already offering below the asking price, avoid adding multiple repair or credit requests. Too many demands can make the deal feel one-sided and discourage the seller from engaging further.
    • Don’t skip the personal touch: Including a thoughtful offer letter can make a difference when your bid is below the asking price. Explain your reasoning politely; for example, you may love the home but need to stay within budget or plan to renovate. Show the seller that your offer is genuine and respectful.

    Don’t take rejection personally: If your lowball offer is rejected, remain professional and positive. Sometimes a seller may return to you later if the home does not sell quickly, so keep communication open and stay patient.two hands shake near a clipboard with a home closing contract

    FAQs about lowball offers

    How does a lowball offer get approved?

    A lowball offer is approved when a seller accepts or negotiates terms closer to your proposed price. It is uncommon but possible, especially in slower markets or when the home has been listed for an extended period. Working with an experienced agent can help position your offer strategically so it is more likely to be taken seriously.

    As a seller, how should I respond to a lowball offer?

    Receiving a lowball offer can sting, but it is important to stay calm and professional. Evaluate whether the buyer’s reasoning has merit, and consult your agent about a possible counteroffer. Even if the offer is low, it may still lead to productive negotiations.

    Should I make a lowball offer?

    That depends on your goals, the property, and the market. If you have done your research, can justify your price, and are prepared to walk away, a lowball offer may be worth pursuing. Consult your real estate agent before deciding to ensure your strategy aligns with current market conditions.

    Final thoughts

    A lowball offer isn’t about undervaluing a home; it’s about finding balance between opportunity and respect. With research, timing, and a well-communicated approach, first-time homebuyers can use this strategy effectively in today’s market. Remember, the right offer isn’t just about price; it’s about making a deal that works for both sides.

     

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    Jasica Usman

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  • DC-area housing market holds steady, but risks of recession grow – WTOP News

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    A D.C.-area real estate broker said the housing market has shown resiliency during the government shutdown. But he’s concerned about the risk of a recession.

    We want to know your thoughts on the government shutdown. How are you and your family affected? Share your story — Send us a message or a voice note through the WTOP News app on Apple or Android. Click the “Feedback” button in the app’s navigation bar.

    As the government shutdown enters its fourth week, one D.C.-area real estate broker said the housing market has shown resilience — so far. But he’s concerned about how long it can hold up.

    Data from the Greater Capital Area Association of Realtors shows that leading into the shutdown in late September, the D.C. area saw a spike in home sale activity.

    That bump came after a slowdown earlier this year during the initial Department of Government Efficiency job cuts.

    “D.C., for example, in September, had closed sales that were 12.4% higher than the year before, and the median price was up 13.3%,” said Corey Burr, with the Burr Group at TTR Sotheby’s International Realty.

    Burr said while activity remains up, he fears that could change if the shutdown continues.

    In the weeks since the shutdown began, Burr said some of his clients who are federal workers have decided to stop looking.

    “Several who had been in the market to purchase have simply put things on ice, or they’ve decided to rent as opposed to purchase,” he said.

    Those clients are pulling out of searches over concerns about job security, he said.

    “They just don’t have the long-term confidence that their jobs are going to be steady,” he said.

    Another shutdown impact has been on clients looking to use federal loan programs, Burr said.

    “Some government loan programs are being postponed because there isn’t enough staff at the federal level to get these loans through,” he said.

    Where things could be headed with the housing market

    Going into the shutdown, higher-end properties were performing better, though some areas continue to struggle. Montgomery County, for example, saw prices rise.

    Across the region, the number of listings on the market and the number of days on the market were at their highest in the last five years.

    “And the average sold price to original listing price is the lowest in the last five years,” Burr said.

    While he noted that overall activity hasn’t been dramatically impacted yet, he warned that lawmakers not striking a deal could lead to more difficult times, not seen since 2008.

    “They’re playing with fire a little bit the longer this goes on,” Burr said. “It could be that our region could go into a recession when the rest of the national economy kind of bumps along.”

    He said for some buyers, the uncertainty has been an advantage as prices dip and more homes are made available.

    “This is the time to jump if they feel confident about their job and they fall in love with a house that suits their needs,” Burr said.

    Get breaking news and daily headlines delivered to your email inbox by signing up here.

    © 2025 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

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    Mike Murillo

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  • Foolish Mortals or Bargain Buyers: 1 in 2 Americans Would Buy a Haunted House for the Right Price

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    Imagine you tour a house you love, only to find out it has a haunted past. Your instinct may be to run away screaming—but you might be missing out on a rare opportunity.

    Furthermore, you’d also find yourself in the minority: According to a spooky survey done by Clever’s Real Estate Witch, 52% of Americans would actually consider buying a haunted house, with 72% claiming they’d do so as long as they got a lower price.

    For the brave, agents agree that you may actually score a deal, if you’re willing to risk a run-in with a spirit from the beyond!

    Why a haunted house may be a good idea

    Jokes a side, let’s be clear that when a house is classified as “haunted,” this is typically derived from legend, lore, or lights that flicker in the night. In other words, no concrete proof.

    Nevertheless, when a community or homeowner dubs a home “haunted,” the notoriety can be a deterrent for many people, creating opportunity for others.

    “Remember, that a haunted reputation doesn’t necessarily make it a bad home,” explains Casey Gaddy, senior real estate agent at Keller Williams Realty in Philadelphia.

    “Neighbors might say it’s haunted, but in reality it’s a house with good bones that’s been neglected and needs the right buyer to bring it back to life,” explains Gaddy.

    Julie Zulanas, licensed real estate agent in El Dorado, Hills, CA agrees.

    “If someone has no fear, they could end up with a fabulous bargain,” she says.

    Sometimes, a “haunted” home is merely an abandoned home or a fixer-upper that just needs some TLC. The latter has actually become a hot commodity, with fixer-upper homes are up to 78% cheaper in several metros, including places in the South like Jackson, MS.

    When to avoid one at all costs

    One reason a home is dubbed “haunted” is due to its notoriously gruesome history. Think the Manson murder house in Los Feliz, CA, or the “In Cold Blood” house in Holcomb, KS.

    Buying one of these “haunted” estates or “murder houses,” as some might call them, may ultimately be too disturbing for you.

    “We all have our own level of comfort with things of this nature,” Gaddy acknowledges. “With that said, if you discover there was tragedy or horrific events that would weigh heavily on you or your family, then it may be worth passing up any savings.”

    Moreover, if resale value is important to you, you might want to think twice as perception is value.

    “Sometimes, no matter how many renovations you do, some properties never shake their spooky reputations,” says Gaddy.

    Legalities around haunted houses

    Most states don’t require sellers to disclose their home is haunted, largely because hauntings can’t be scientifically proven. 

    “You can prove a home has radon, and you can prove a home has mold, but there isn’t a widely accepted test to prove a home has a ghost,” says Mark J. Schmidt, broker associate at RE/MAX Country in Milltown, NJ.

    Only four states, including New York, New Jersey, Massachusetts, and Minnesota, mention “paranormal activity” in their disclosure laws. 

    New York follows the “Ghostbusters ruling” in which sellers must reveal their house is haunted if that’s the way it’s advertised to the public.

    While New Jersey and Massachusetts don’t require sellers to be upfront about their haunted house, they must be honest if buyers ask them directly. 

    Minnesota has a “buyer beware” rule that states sellers aren’t required to disclose paranormal activity, and it’s the buyer’s responsibility to do the research if something doesn’t seem right. 

    Do your homework before closing

    Before you sign on the dotted line, be honest about how you feel in the home. If there is a negative energy, you might experience a certain heaviness or dread when in the property. 

    “This is something to watch out for while initially touring the property, and any other time you’re there, like for the home inspection,” advises Schmidt.

    Also, don’t forget to do your own research, ideally before making an offer. Schmidt explains that if the home is over 100 years old, there is a good chance either someone died in it or a wake for a deceased person was held there.

    You can search online to see if there have been any events that would claim lives at the home, such as a natural disaster, fire, or homicide.

    “A great resource I recommend to anyone who is concerned about whether someone may have passed in the property is DiedInHouse.com.  For a small fee, they’ll tell you if anyone has died in the home,” says Schmidt. 

    Lastly, Zulanas recommends you invest in all contractual inspections plus additional paranormal-focused inspections. These can give you some peace of mind and prevent costly repairs for things like mold, termites, and asbestos—and alert you to how many bumps in the night you’ll be up against in your new abode!

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    Anna Baluch

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  • What Are Mineral Rights and Who Owns Them?

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    Key takeaways

    • Mineral rights define who owns underground resources like oil, gas, coal, and precious metals. Missing or sold mineral rights can affect property value and negotiation power during a home sale.
    • Ownership of mineral rights can be separate from surface rights.
    • Knowing who owns mineral rights is essential before buying or selling property.
    • States like Texas, Oklahoma, Colorado, North Dakota, and Pennsylvania have the most active mineral rights markets.

    Many people assume that owning land means owning everything beneath the surface, but that’s not always true. In some cases, the mineral rights — which include natural resources such as oil, gas, or precious metals — may be owned separately from the land itself.

    Remember the opening of The Beverly Hillbillies, when Uncle Jed was “shootin’ at some food, and up through the ground came a-bubblin’ crude”? Oil, that is — black gold, Texas tea. We all wish it were that easy to strike it rich and become a millionaire overnight. But before you find yourself in a similar situation, it’s essential to understand what you actually own when purchasing property or land.

    In this article, we’ll break down how mineral rights work, why they matter, and how to navigate or negotiate them when buying or selling real estate.

    What are mineral rights?

    • A mineral right is a legal interest that gives the owner the ability to explore, extract, or sell subsurface minerals.
    • A surface right gives the owner control of the land’s surface for living, building, or farming.

    A property may include both surface and mineral rights, or these rights may be severed into separate ownerships. When mineral rights are severed, the mineral owner holds the legal authority to access underground resources — even if another person owns the land above.

    This concept is common in resource-rich states such as Texas, Oklahoma, and North Dakota.

    What minerals are not included?

    Several minerals aren’t included in mineral rights. Common examples include:

    • Limestone
    • Sand
    • Gravel
    • Subsurface water

    The rules vary by location, so if you’re unsure whether something is covered by your mineral rights, check with a real estate attorney or your local land office.

    Do I own the mineral rights to my property?

    Property ownership does not automatically include mineral rights. These rights may have been sold, leased, or reserved by a previous owner decades ago.

    Fact: According to Rocket Mortgage, mineral rights transfers must be recorded in county land records to be valid.

    If you own a property deed, review it for language such as “all mineral rights conveyed” or “mineral rights excepted and reserved.”

    You can verify ownership by ordering a title search or consulting a landman, a professional who researches mineral ownership histories.

    How to find out who owns the mineral rights to your property

    You can determine mineral rights ownership through public and professional resources:

    • County clerk or recorder’s office: Property deeds and mineral conveyances are publicly recorded.
    • Title companies: A title search can reveal severed mineral ownership.
    • State geological surveys: Many states maintain online databases of oil, gas, and mineral activity.
    • Free mineral rights search: Some websites offer lookup tools, but they’re often incomplete. Always verify results with official records.

    How mineral rights work

    Owning mineral rights allows you to explore, extract, or profit from natural resources beneath your land — such as oil, gas, or precious metals. Some mineral rights owners choose to sell or lease these rights to companies that have the means to explore and develop the area.

    When selling or leasing mineral rights, owners typically receive compensation through royalties, lease payments, or shut-in payments (paid when a well capable of producing resources is temporarily not in use). Understanding how these agreements work can help you protect your investment and maximize returns.

    Key provisions in mineral rights sales agreements

    Mineral rights sales agreements often include detailed provisions outlining the deal terms — much like contingencies in a traditional home sale. These provisions clarify responsibilities, timelines, and conditions under which the sale can proceed.

    Common provisions include:

    • Conveyance: Defines the price, specific minerals covered, and any net profit or royalty interests.
    • Diligence: Sets a time frame for the buyer to verify the title and allows withdrawal if issues arise.
    • Closing: Details how and when the transaction will be completed, including costs and taxes.

    How mineral rights are held

    Mineral and surface rights together are referred to as an estate. How these rights are structured can vary by location and ownership history.
     There are three primary ways mineral rights are held:

    • Unified estate: The surface and mineral rights are owned together.
    • Severed estate: Ownership of mineral and surface rights is separate.
    • Fractional estate: Multiple owners share portions of the mineral rights.

    Special circumstances and state differences

    In many parts of the U.S., especially in energy-producing states such as Texas, Oklahoma, Pennsylvania, Louisiana, Colorado, and New Mexico, it’s common for mineral rights to be severed from surface rights. This often stems from decades of oil, gas, and coal development, when landowners sold or leased subsurface rights but retained ownership of the land above.

    If you’re buying property in one of these states, don’t assume mineral rights are included in your deed. Always verify ownership before making an offer to avoid complications later.

    Some states have unique disclosure requirements. For instance, North Carolina requires sellers to provide a Mineral and Oil and Gas Rights Mandatory Disclosure Statement at closing. This form clarifies whether mineral rights have been severed or will be severed before the sale.

    How to negotiate mineral rights

    Negotiating mineral rights can be complex, but understanding the key factors that influence value will help you secure a fair deal. Preparation and professional guidance are essential for both buyers and sellers.

    Tips for effective negotiation:

    • Know the market value: Research current lease and royalty rates in your area.
    • Understand your leverage: Landowners in high-demand regions or near active wells have stronger negotiating power.
    • Negotiate payment terms: Discuss royalty percentages, lease duration, and renewal options.
    • Protect your surface rights: Include provisions that limit where and how drilling can occur.
    • Seek professional help: Hire a landman, mineral rights attorney, or appraiser to guide you.

    Successful negotiations balance fair compensation with clear terms that protect both the landowner and the buyer.

    How to protect yourself when buying property with mineral rights

    Whether you’re buying property in a high-production area or a region with little drilling activity, take these steps to protect your investment:

    • Read the disclosure: Review any state-required mineral rights forms carefully.
    • Check the appraisal: Ensure it reflects whether mineral rights are included or severed.
    • Include it in the contract: Specify in writing which rights are being transferred — surface, mineral, or both.
    • Seek expert guidance: Consult a real estate attorney familiar with local mineral laws.

    Frequently asked questions

    How do I find out who owns the mineral rights to my property?
    Check your county recorder’s office, hire a title company, or consult a landman to trace mineral ownership.

    Do I own the mineral rights to my property?
    Not necessarily. Mineral rights can be severed and owned separately from surface rights. Review your deed and title history for confirmation.

    Can I do a free mineral rights search?
    Yes, but free searches are often incomplete. Always confirm with official county or state land records.

    Why would a seller keep mineral rights?
    To retain potential income from resource extraction and future royalties.

    What are the risks of owning mineral rights?
    Liability, legal disputes, and fluctuating market values.

    Bottom line

    Mineral rights can significantly affect a property’s value, use, and negotiation potential.
    When a property includes mineral rights, it often holds greater long-term potential for income and resale value — especially in active oil, gas, or mining regions.

    However, when mineral rights have been severed or sold, property use may be limited. For example, a buyer might not be able to drill a well, lease to an energy company, or prevent future mineral development nearby. That can reduce property value or make financing harder to secure.

    Before buying or selling, review ownership records, confirm whether mineral rights are included, and consult a real estate attorney or landman. These professionals can help you interpret lease terms, royalty agreements, and potential encumbrances on the title. Clarifying ownership early protects your investment and ensures a smoother transaction.

     

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    Jasica Usman

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  • Essential Elements of a Real Estate Contract: What Every Buyer and Seller Should Know

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    Key takeaways:

    • Real estate contracts must include key elements like the offer, acceptance, and consideration to be legally binding.
    • Missing or unclear terms can lead to disputes, delays, or even failed transactions.
    • Buyers, sellers, and investors can avoid pitfalls by understanding essential contract elements and reading every clause carefully.

    Real estate contracts are the backbone of every property transaction. In fact, according to the National Association of Realtors (NAR), contract issues accounted for 22% of delayed closings in 2023, making them one of the most common stumbling blocks in real estate deals. Whether you’re a first-time homebuyer, a seasoned investor, or preparing to sell your property, understanding the essential elements of a real estate contract can save you time, money, and stress.

    What is a real estate contract?

    A real estate contract is a legally binding agreement between parties to buy, sell, or transfer property. It outlines the terms of the transaction — everything from purchase price to contingencies — and protects both buyers and sellers. Without the correct elements, the contract may not hold up in court.

    To be enforceable, every real estate contract should include these critical elements:

    1. Offer and acceptance

    The buyer proposes an offer, and the seller must accept it. This mutual agreement — often called “meeting of the minds” — is the foundation of the contract.

    2. Consideration

    Consideration refers to the value exchanged, typically the purchase price. Without consideration, the contract isn’t valid.

    3. Legality of purpose

    The contract must outline a lawful purpose. For example, you can’t enforce a contract to purchase a property for illegal use.

    4. Competent parties

    Both buyer and seller must be legally capable of entering into the contract (of legal age, sound mind, and not under duress).

    5. Property description

    The contract should include a clear and accurate legal description of the property, not just the street address.

    6. Signatures

    A contract isn’t binding without the signatures of all parties involved. In most states, electronic signatures are acceptable.

    7. Contingencies

    Contingencies are conditions that must be met before closing. Common examples include:

    8. Deadlines and timelines

    Contracts should specify deadlines for financing approval, inspections, appraisals, and closing. Vague timelines often lead to disputes.

    Example: Imagine a buyer submits an offer that states, “Financing must be secured within a reasonable time.” Without a specific date, “reasonable” could mean two weeks to the seller but two months to the buyer. If the lender takes longer than the seller expects, the deal could collapse, and the buyer might even lose their earnest money. A stronger clause would read, “Buyer must obtain financing approval within 21 days of contract acceptance.”

    9. Disclosures

    State and federal law require sellers to disclose known defects or issues with the property, such as lead paint or water damage.

    Example: A seller fails to disclose that the basement floods during heavy rain. After closing, the new buyer discovers the problem and faces thousands of dollars in repairs. Because the defect was known but not disclosed, the seller could be held legally responsible. To avoid this, sellers should be upfront about all known issues, and buyers should carefully review disclosure forms and ask follow-up questions.

    Common pitfalls in real estate contracts

    Even with the essential elements in place, many buyers and sellers run into problems because they miss important details. Here are the most common pitfalls — and how to avoid them:

    Not adding expiration dates to your offer

    Without a clear expiration date, your offer could remain open indefinitely, creating uncertainty and limiting your ability to pursue other properties. Always include a deadline so both parties know when the offer is valid.

    Financial loss

    Failing to meet contractual obligations — like missing a financing deadline — can cause you to lose your earnest money deposit, which is often several thousand dollars.

    Legal disputes

    Misunderstandings about responsibilities or unclear language around repairs, deadlines, or contingencies can lead to disputes and even breach-of-contract claims.

    Unforeseen costs

    Contracts should spell out who pays for what. Without clarity, you might end up responsible for unexpected costs such as property taxes, title insurance, or attorney fees.

    Missed contingencies

    If you overlook or waive important protections, like the home inspection or appraisal contingency — you could be forced to move forward on a deal that doesn’t make financial sense.

    Unwanted property conditions

    Skipping inspections or failing to include repair clauses could leave you stuck with a home that has undisclosed defects.

    Overlooking contingencies

    Buyers sometimes underestimate how crucial contingencies are for protecting their interests. Whether it’s securing financing or ensuring a fair appraisal, contingencies give you the ability to walk away if things don’t line up.

    Missing deadlines

    Real estate contracts include strict timelines for providing documentation, completing inspections, and closing the deal. Missing these deadlines can lead to penalties or even cancellation.

    Underestimating additional costs

    Buyers often focus only on the purchase price and forget about closing costs — such as title insurance, appraisal fees, property taxes, and attorney fees — that can add up to 2–5% of the home’s price.

    Ignoring due diligence

    Failing to conduct a title search or skipping a professional inspection can leave you vulnerable to liens, boundary disputes, or hidden structural issues.

    Emotional decision-making

    Falling in love with a property can cloud your judgment, leading you to overlook unfavorable terms or make offers that stretch beyond your budget.

    Misunderstanding local laws

    HOA rules, zoning regulations, or city ordinances can limit how you use or modify your property. Ignoring these up front can cause frustration and added expenses later.

    How to avoid these pitfalls

    • Read the entire contract carefully – Don’t skim. Take time to understand every clause and condition.
    • Ask questions – If something is unclear, your real estate agent or attorney can provide clarity.
    • Hire a professional – A real estate attorney can spot issues and ensure the contract protects your interests.
    • Perform thorough due diligence – Always get a home inspection and a title search before closing.
    • Understand all costs – Factor in closing costs, taxes, and ongoing ownership expenses.
    • Be patient – Rushing increases the risk of overlooking crucial details.

    Why working with professionals matters

    Real estate contracts are complex, and even a small oversight can cost thousands of dollars. A licensed real estate agent or real estate attorney can ensure your contract is airtight and that your interests are protected.

    If you’re ready to buy or sell a home, the best step you can take is working with an experienced agent who knows the ins and outs of contracts. You can find a top-rated Redfin real estate agent in your area to guide you through every step of the process.

    Frequently asked questions

    1. Is a handwritten real estate contract valid?
      Yes, as long as it contains all essential elements, but formal written contracts are strongly recommended.
    2. Can a buyer back out of a real estate contract?
      Yes, but only under specific circumstances—such as when a contingency isn’t met or if the seller fails to disclose a defect.
    3. What happens if a contract is missing signatures?
      Without signatures from all parties, the contract is not legally enforceable.

    Moving forward with confidence

    Understanding the essential elements of a real estate contract isn’t just legal fine print — it’s the foundation of a successful real estate transaction. By knowing what to look for, avoiding common pitfalls, and working with experienced professionals, you can move forward with confidence whether you’re buying, selling, or investing.

     

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    Jasica Usman

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  • What Are Buyer Concessions? A Guide for Homebuyers

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    Key takeaways:

    • Buyer concessions are seller-offered incentives that make a home purchase more affordable for buyers. 
    • Common types include covering closing costs, repair credits, mortgage rate buy-downs, and HOA fees. 
    • Concessions can help sellers attract buyers in slower markets and ease financial stress for first-time buyers.

    What are buyer concessions in real estate?

    When you’re buying a home, the list of expenses goes beyond the down payment. Closing costs, inspection fees, and unexpected repairs can quickly add up. To make the purchase more appealing, sellers may offer buyer concessions—financial incentives that reduce the buyer’s out-of-pocket costs.

    These concessions can make the difference between a deal falling through and closing successfully, especially for first-time buyers navigating high upfront expenses.

    Recent Redfin real estate data shows that in the first quarter of 2025, an estimated 44.4% of U.S. home-sale transactions included seller concessions, up from 39.3% a year earlier and nearing the record high of 45.1% set in early 2023. 

    This uptick reinforces how buyer concessions remain a powerful negotiation tool — key for helping buyers afford homes without forcing sellers to reduce listing prices.

    Why are buyer concessions important?

    Buyer concessions benefit both sides of the transaction:

    • For buyers: Concessions lower upfront costs, making homeownership more accessible. This can be especially helpful for buyers who are stretching their budgets. 
    • For sellers: Offering concessions can attract more buyers in a competitive market, help a home sell faster, and reduce the need for larger price cuts.

    Types of buyer concessions explained

    Concessions can take many forms. Some of the most common include:

    Closing cost assistance

    Sellers may agree to pay a portion of the buyer’s closing costs, which can range from 2–5% of the home’s purchase price. For example, on a $400,000 home, closing costs could total $8,000–$20,000. A seller covering even part of this amount can significantly ease the buyer’s financial burden.

    Repair credits

    If an inspection reveals issues, sellers may offer repair credits instead of making the fixes themselves. This allows buyers to handle repairs after closing while still lowering immediate costs.

    Mortgage rate buy-downs

    Some sellers help buyers by contributing funds to temporarily reduce their mortgage interest rate. This “buy-down” can lower monthly payments for the first few years of the loan, giving buyers financial breathing room. Learn more about mortgage rates.

    HOA or insurance fees

    In certain cases, sellers may cover several months of homeowners’ association dues or contribute to homeowners’ insurance premiums, further easing buyers’ expenses.

    Examples of buyer concessions in action

    • A seller offers $10,000 in closing cost credits, helping a buyer secure financing without draining their savings. 
    • After an inspection reveals that roof repairs are needed, the seller provides a $5,000 repair credit instead of completing the work. 
    • In a slower market, a seller might fund a 2-1 mortgage rate buy-down, reducing the buyer’s interest rate by 2% in the first year and 1% in the second year. In another case, a seller could agree to cover six months of HOA fees upfront, giving the buyer extra breathing room in their budget during the first year of homeownership.

    FAQs about buyer concessions

    Are buyer concessions common?
    Yes, especially in markets where homes are taking longer to sell. Concessions are less common in hot, highly competitive markets.

    Can concessions be negotiated?
    Absolutely. Concessions are part of the negotiation process and depend on factors like market conditions, the home’s condition, and buyer demand.

    Do concessions affect home value?
    Not directly. However, appraisers may consider concessions when determining the home’s fair market value, especially if they’re substantial.

    Final thoughts on buyer concessions

    Buyer concessions are a powerful tool that can make homeownership more attainable and help sellers close deals more quickly. Whether you’re a first-time buyer looking for financial relief or a seller trying to stand out in a slower market, understanding how concessions work can give you an edge in negotiations.

    Ready to begin your home search? Head over to Redfin.com to browse real estate listings, connect with local experts, and learn more about how buyer concessions can support your next move.

     

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    Jasica Usman

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  • The Canadian mortgage stress test, explained

    The Canadian mortgage stress test, explained

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    In 2018, the stress test was expanded to include buyers with more than a 20% down payment (those with uninsured mortgages). Since then, all Canadian home buyers applying through a federally regulated lender—as well as those refinancing their current mortgage—have been required to pass the test.

    Has the stress test changed over the years?

    Yes. The stress test has evolved in a couple of ways, including changes to the qualifying rate itself, and how the rate is applied.

    Until June 2021, the stress test rate was set at either 2% above the contract rate that buyers negotiated with their lender, or at the posted Bank of Canada (BoC) five-year rate, whichever was higher. However, when the BoC slashed rates at the onset of the COVID-19 pandemic, there were concerns that its five-year benchmark rate was too low to adequately protect borrowers from defaulting on their mortgages in the future.

    So, the Office of the Superintendent of Financial Institutions (OSFI), a federal government agency that acts as Canada’s banking watchdog, decided to decouple the minimum qualifying stress test rate from the central bank’s rates, and instead use a set floor rate that is reviewed annually.

    Another change has to do with mortgage renewals. Previously, if borrowers wanted to move their mortgage to a different federally regulated lender at renewal, they needed to “pass” the stress test again as a new applicant. In late 2023, however, the federal government eliminated that requirement on insured or high-ratio mortgages, as part of the Canadian Mortgage Charter. And as of Nov. 21, 2024, borrowers with uninsured mortgages will also be able to switch lenders at renewal and qualify based on market interest rates, rather than the stress tested rate.

    “This is a very good thing,” says Crawford. “Borrowers will be able to qualify at the contract rate, which means they can shop around at renewal instead of just accepting whatever their current lender is offering.”

    It’s important to note, however, that borrowers who are refinancing their mortgage—meaning, they want to change the terms of their mortgage contract, say, to extend the amortization period or to borrow extra money against the home’s equity—must pass the stress test again with either their current lender or a new one.

    What does the stress test mean for borrowers?

    The stress test reduces the size of mortgage that buyers can qualify for, says Crawford. So, unless you are able to come up with a bigger down payment to make up the difference, the test also lowers your maximum purchase price. 

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    Tamar Satov

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  • The Canadian mortgage stress test, explained

    The Canadian mortgage stress test, explained

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    “The stress test was introduced to add a margin of safety to ensure borrowers could make their payments if they faced a change in circumstances—such as if interest rates go up or their income changes,” says Crawford. 

    In 2018, the stress test was expanded to include buyers with more than a 20% down payment (those with uninsured mortgages). Since then, all Canadian home buyers applying through a federally regulated lender—as well as those refinancing their current mortgage—have been required to pass the test.

    Has the stress test changed over the years?

    Yes. The stress test has evolved in a couple of ways, including changes to the qualifying rate itself, and how the rate is applied.

    Until June 2021, the stress test rate was set at either 2% above the contract rate that buyers negotiated with their lender, or at the posted Bank of Canada (BoC) five-year rate, whichever was higher. However, when the BoC slashed rates at the onset of the COVID-19 pandemic, there were concerns that its five-year benchmark rate was too low to adequately protect borrowers from defaulting on their mortgages in the future.

    So, the Office of the Superintendent of Financial Institutions (OSFI), a federal government agency that acts as Canada’s banking watchdog, decided to decouple the minimum qualifying stress test rate from the central bank’s rates, and instead use a set floor rate that is reviewed annually.

    Another change has to do with mortgage renewals. Previously, if borrowers wanted to move their mortgage to a different federally regulated lender at renewal, they needed to “pass” the stress test again as a new applicant. In late 2023, however, the federal government eliminated that requirement on insured or high-ratio mortgages, as part of the Canadian Mortgage Charter. And as of Nov. 21, 2024, borrowers with uninsured mortgages will also be able to switch lenders at renewal and qualify based on market interest rates, rather than the stress tested rate.

    “This is a very good thing,” says Crawford. “Borrowers will be able to qualify at the contract rate, which means they can shop around at renewal instead of just accepting whatever their current lender is offering.”

    It’s important to note, however, that borrowers who are refinancing their mortgage—meaning, they want to change the terms of their mortgage contract, say, to extend the amortization period or to borrow extra money against the home’s equity—must pass the stress test again with either their current lender or a new one.

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    Tamar Satov

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  • Why are mortgages so expensive in Canada? – MoneySense

    Why are mortgages so expensive in Canada? – MoneySense

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    A total of three rate cuts passed down from the Bank of Canada since June have cumulatively lowered the cost of borrowing for Canadians by 75 basis points, from 5% to 4.25%, offering home buyers some much-needed relief in terms of affordability.

    This is according to the latest affordability report compiled by Ratehub.ca, which crunches the minimum annual income required to buy an average home in some of Canada’s major cities. (Ratehub Inc. owns both Ratehub.ca and MoneySense.) The report is based on September 2024 and August 2024 real estate data reported by the Canadian Real Estate Association (CREA). It illustrates how changing mortgage rates, stress test rates and real estate prices are impacting the income needed to buy a home. 

    The September edition (updated monthly, so bookmark this page) shows the required income lowered in 11 of the 13 housing markets studied, as the average five-year fixed mortgage rate dropped to 5.04%, compared to 5.16% in August. As a result, the corresponding average mortgage stress test rate—which tacks on an additional 2% to a borrowers’ contract mortgage rate—fell to 7.04% from the previous 7.16%.

    Let’s take a look at how that’s impacted home buyers across Canada.

    The best places to buy real estate in Canada

    Housing affordability across Canada’s major cities

    Check out the chart below to see how affordability changed between August and September in Canada’s main housing markets, based on the income required to qualify for a mortgage.

    September 2024: How much do you need to earn to buy a home in Canada?

    City Average home price in August Average home price in September Change in home price  Income required in August Income required in September Change in income
    Vancouver $1,195,900 $1,179,700 -$16,200 $224,000 $219,000 -$5,000
    Toronto $1,082,200 $1,068,700 -$13,500 $204,100 $199,800 -$4,300
    Hamilton $840,300 $831,500 -$8,800 $161,800 $158,740 -$3,060
    Victoria $866,700 $864,400 -$2,300 $166,420 $164,450 -$1,970
    Halifax $543,700 $538,100 -$5,600 $109,940 $108,000 -$1,940
    Calgary $586,100 $582,100 -$4,000 $117,360 $115,600 -$1,760
    Ottawa $646,000 $642,800 -$3,200 $127,830 $126,100 -$1,730
    Edmonton $400,200 $399,400 -$800 $84,850 $83,990 -$860
    Winnipeg $361,800 $362,500 $700 $78,140 $77,600 -$540
    Fredericton $311,300 $312,000 $700 $69,310 $68,860 -$450
    Regina $319,700 $320,700 $1,000 $70,780 $70,360 -$420
    Montreal $535,700 $543,400 $7,700 $108,550 $108,900 $350
    St. John’s $354,600 $364,100 $9,500 $76,880 $77,880 $1,000
    Data in the chart is based on a mortgage with 20% down payment, 25-year amortization, $4,000 annual property taxes and $150 monthly heating. Mortgage rates are the average of the Big Five Banks’ 5-year fixed rates in September 2024 and August 2024. Average home prices are from the CREA MLS® Home Price Index (HPI).

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    Canadian cities where affordability improved

    Where in Canada is owning a home becoming more affordable?

    Vancouver: A chilly start to the autumn market

    Vancouver topped the list of cities with most-improved affordability, largely due to the fact that the average home price absorbed a $16,200 drop from August. Make no mistake,—this is still Canada’s most expensive housing market with an average property price tag of $1,179,700. But demand has been quite cool coming out of the summer months. According to the Greater Vancouver Realtors, sales fell 3.8% year-over-year in September, while the supply of new listings rose 12.8%, leading to an easy buyers’ market. As a result, Vancouver home buyers need to earn $5,000 less than they did last month to qualify for a mortgage on the average-priced home, at an income of $219,000.

    Toronto: A month of flat sales

    The city of Toronto came in second, as home prices continue to fall within Ontario’s largest city; the average property sold for $1,068,700, $13,500 less than it did in August, according to the Toronto Regional Real Estate Board. This is largely due to the fact that sales were unchanged from the previous month (though things are improving on an annual basis, coming in 8.6% higher than in 2023). Meanwhile, fresh supply continues to flood the market with new listings, which surged 35.5% year-over-year. Combined with easing mortgage rates, the average Toronto home buyer saw their required income shrink by $4,300, to $199,800.

    Hamilton: Hovering below the historical average

    Rounding out the top three cities is Hamilton, which has long been a popular Southern Ontario real estate destination, without the million-dollar price tag that characterizes neighbouring Toronto. The average home price in Hamilton in September came to $831,500, a decrease of $8,800 from August. The Association of Hamilton-Burlington reports that while sales were brisk in September, they continue to lag 2023 levels by 4% year-to-date and remain 28% below the long-term average. Meanwhile, new listings and inventory levels continue to rise, now sitting at a cumulative five months. That’s all cooled home prices, and as a result, Hamilton home buyers need to earn $158,740 to buy a home, $3,060 less than they did in August.

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  • How Much Does Interest Rate Affect Monthly Payment? You Asked, We Answered.

    How Much Does Interest Rate Affect Monthly Payment? You Asked, We Answered.

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    For those looking to move from an apartment in Glendale, California to a home in Sherman Oaks or outside the state, mortgage interest rates are a crucial factor to consider. These rates directly impact the monthly payments you’ll make on your loan. How much does interest rate affect monthly payment? You might be asking, especially now that interest rates have finally decreased. We’ll answer that and more here. 

    Understanding how interest rates work and how they can affect your finances is essential for making informed decisions about homeownership. In this Redfin article, we’ll explore the basics of mortgage interest rates, how they influence your monthly payments and strategies for managing them. Now, let’s get started.

    1. Understanding interest rates

    First, let’s talk about what interest rates are and how they work.

    Mortgage interest vs principal

    When you take out a mortgage, you borrow money from a lender to purchase a home. In return, you agree to repay the loan over a set period, plus interest. The principal is the original amount you borrowed, while the interest is the additional cost you’ll pay for using the lender’s money.

    Fixed-rate mortgage vs adjustable-rate mortgage

    There are two main types of mortgage interest rates: fixed-rate and adjustable-rate.

    • A fixed-rate mortgage has an interest rate that remains the same throughout the life of the loan. This means your monthly payments will be consistent.
    • An adjustable-rate mortgage (ARM) has an interest rate that can change over time, typically based on a specific index. This means your monthly payments could increase or decrease depending on market conditions.

    Non-qualified mortgage loans

    Non-QM (non-qualified mortgage) loans are a type of mortgage that doesn’t meet the strict underwriting guidelines established by Fannie Mae and Freddie Mac. These loans are often offered to borrowers who may not qualify for traditional mortgages due to factors such as a lower credit score, higher debt-to-income ratio, or unconventional income sources. 

    Nicholas Hiersche, president of The Mortgage Calculator in Miami, Florida shares, “Although non-QM loans typically come with higher rates, the flexible income guidelines enable borrowers to qualify with more income, providing an essential option when conventional rates are out of reach.”

    2. The impact of interest rates on mortgage payments

    The interest rate on your mortgage directly affects your monthly payment. A higher interest rate means you’ll pay more in interest over the life of the loan, resulting in higher monthly payments. Conversely, a lower interest rate means you’ll pay less interest, leading to lower monthly payments.

    Ryan Leahy, senior loan officer for Leahy Lending shares that “Even a small change can significantly impact the overall cost of your loan.” Leahy adds, “Homebuyers should know that a 1% interest rate drop can increase their buying power by 10%, allowing them to afford more home for the same monthly payment.”

    To illustrate this, let’s consider two hypothetical scenarios:

    • Scenario 1: You take out a $300,000 mortgage with a 30-year fixed interest rate of 5%. Your monthly payment would be approximately $1,610.
    • Scenario 2: You take out the same $300,000 mortgage but with a 30-year fixed interest rate of 4%. Your monthly payment would be approximately $1,432.

    In this example, a 1% difference in interest rates results in a monthly savings of $178. Over the life of the loan, these savings can add up significantly.

    3. Strategies for managing interest rates

    Want to take advantage of interest rates in this current market? Let’s look at factors that impact rates and how to negotiate. 

    Factors that can lower interest rates

    Several factors can influence the mortgage rate you’ll receive on your mortgage and without a doubt you’re likely shopping to get the best mortgage rate. Factors that can lead to lower interest rates include:

    • Credit score: A higher credit score generally leads to a lower interest rate. For those looking to improve their credit scores, Roland Wilcox with Sierra Capital Mortgage in Pasadena, California suggests “consistently paying bills on time, keeping your credit card balances below 30% of your credit limit, maintaining older accounts, and diversifying your credit cards.”
    • Down payment: A larger down payment can also help you secure a lower interest rate.
    • Loan term: Longer loan terms often result in lower monthly payments but higher overall interest costs.
    • Mortgage type: Certain mortgage types, such as government-backed loans, may offer lower interest rates.

    Negotiating your interest rate

    It’s worth negotiating with your lender to see if you can secure a lower interest rate. They may be willing to offer a better deal, especially if you’re a strong borrower with multiple offers from other lenders.

    Refinancing your mortgage

    If interest rates have dropped significantly since you took out your mortgage, refinancing may be an option. This involves taking out a new loan to pay off your existing mortgage. If the new interest rate is lower, you can potentially reduce your monthly payments.

    How much does interest rate affect monthly payments: Some final thoughts

    Understanding how mortgage interest rates work is essential for making informed decisions about your homeownership. By understanding the factors that influence interest rates and exploring strategies for managing them, you can save money on your monthly mortgage payments over the long term.

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    Marcello Kline

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  • Open bidding in Ontario: Game-changer or business as usual? – MoneySense

    Open bidding in Ontario: Game-changer or business as usual? – MoneySense

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    Late last year, changes to Ontario’s real estate legislation, the Trust in Real Estate Services Act (TRESA), came into effect, making open bidding legal in Ontario. (Real estate is generally regulated at a provincial level, so as of now, these changes only apply to Ontario.) It was big news at the time, but has it made a big impact? Here’s what this legislation means for buyers and sellers in the province, and how it could influence the housing market.

    What is open bidding in real estate?

    Open bidding in real estate is when the details of all registered offers on a property are shared openly between prospective buyers. This means that if four different offers are registered on a house, the four potential buyers can see the specifics of each competitor’s offer, including the purchase price, deposit, closing date and other terms. The name of each person making an offer is withheld, and if the purchase is contingent on the sale of another property, that information is also confidential. 

    Unlike a closed bidding process—often referred to as blind bidding—open bidding allows each prospective buyer to know exactly how their offer compares to the competition. It also means that they can adjust their offer based on this information (within a given timeframe). Open bidding eliminates a lot of the guesswork in making an offer on a home, and it’s intended to maximize transparency between buyers and sellers.

    You’re 2 minutes away from getting the best mortgage rates in CanadaAnswer a few quick questions to get a personalized rate quote*You will be leaving MoneySense. Just close the tab to return.

    What impact has open bidding had on Ontario’s housing market?

    In 2022, the federal government announced that it would be implementing a Home Buyers’ Bill of Rights. One of the goals of the bill was to make housing more affordable by putting an end to blind bidding, and it appears to have influenced the changes to the TRESA. However, blind bidding has not been banned in Ontario or anywhere else in Canada at this time. Because this new legislation makes open bidding optional, not mandatory, blind bidding is still commonplace in Ontario.

    “Open bidding brings more visibility to the buying process,” says Doug Vukasovic, a realtor in Toronto. That said, he isn’t seeing open bidding being used broadly yet: he’s only represented one buyer in an open bidding process, and so far none of his listing clients have opted to use open bidding. “It’s not something people are gravitating towards.”

    Based on what he’s seeing in Toronto, Vukasovic doesn’t think that open bidding will have an impact on real estate prices. Changes in the market will come from interest rates, he says, noting that after a slight cool-down in some regions, the demand for houses should gradually increase as mortgage lending costs continue to ease. In other words, affordability is the bigger factor. “We need lower interest rates for people to be comfortable placing an offer,” he says. 

    How can sellers decide if open bidding is right for them?

    Once you share the details of your listing with prospective buyers, there’s no going back—but you can change the bidding process from closed to open relatively easily. “At any point during the bidding war process, a seller can change from closed to open bids,” Vukasovic explains. “They just need to give written consent to the agent” and disclose the change to buyers. 

    It rarely benefits a seller to start with open bidding, Vukasovic says, but it can be helpful once several bids have been registered on the property. For example, if the top three offers on a million-dollar-plus home are within $20,000 of each other, a seller can open up the bidding process to encourage each of those prospective buyers to put in their best and final offer. In this situation, the buyers benefit from greater price transparency, and the seller wins if one of the bidders decides to increase their offer. 

    However, when the top two offers on a property are farther apart—say, by $100,000 or more—it’s unlikely that the seller would want prospective buyers to know that through open bidding, as the higher bidder might pull their offer to avoid overpaying for the property. This scenario is far less common than the one described above. “Someone’s got to stick their neck out a little, but paying hundreds of thousands over [the next best offer] is rare,” Vukasovic says. 

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  • Where to buy a home for under $1 million in Canada – MoneySense

    Where to buy a home for under $1 million in Canada – MoneySense

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    But if you have some flexibility around where to live, there are cities and neighbourhoods in Canada where homes can be had for less than seven figures—lots of them, in fact. All but five of the 45 cities and regions analyzed by our partner Zoocasa in this year’s Where to Buy Real Estate in Canada report had benchmark prices below $1 million (as of the end of 2023).

    See the list of Canadian cities and regions below, in order of most to least affordable (followed by neighbourhood data for Toronto and Vancouver). You can sort the data in each table by tapping on the column headers, or filter results using the last row. You can download the data to your device in Excel, CSV and PDF formats. 

    Canadian cities and regions with a benchmark price under $1 million

    Prohibitively high prices around Greater Toronto and B.C.’s Lower Mainland can obscure the fact that the national average home price was a tad under $735,000 in 2023, according to the benchmark Zoocasa used in its analysis.

    And even in the regions with benchmark prices above the $1-million threshold, the survey demonstrates there are more affordable neighbourhoods to be found. It should be noted our statistics do not differentiate between housing types, so don’t expect to find detached homes for these prices in these cities. But it’s still possible to get a toehold in the market with a condo or townhouse for less than $1 million, sometimes a lot less.

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    Where to get a home for less than $1 million in Toronto

    Our survey turned up no less than 106 neighbourhoods in the city of Toronto with benchmark prices below $1 million—the most affordable being Tandridge, with a benchmark price of just $484,269.

    Toronto neighbourhoods

    With prices like those, you might assume there’s something wrong with these neighbourhoods. Consider that a lot of them are coming up in the world. Tandridge, along with Rivalda Heights, Keelegate, Humbergate, Cook Village, Duncanwoods, Morningside, Woodbine Downs, South Steeles, Glenfield, Chapel Glen, Dorset Park, Glen Long and Mount Olive have all seen price appreciation of 50% or more over the past five years. Yorkwoods and University Village have both gone up more than 80%, and Beaumond Heights, an astonishing 113%!

    Beyond those in the city of Toronto, we count an additional 65 neighbourhoods across the Greater Toronto Area where the benchmark price was below $1 million at the end of 2023.

    Greater Toronto Area neighbourhoods

    How much would a typical home in Toronto’s Tandridge neighbourhood cost you in monthly mortgage payments? Using a mortgage payment calculator, we find that with the minimum down payment of $24,213 and a mortgage of 25 years, you’d be looking at a monthly payment of $2,685—based on the lowest available five-year fixed mortgage rate on June 13. Add in taxes, insurance and fees, and you’d need a total of $40,706 in cash to close the deal. With 20% down ($96,854), the monthly payment would be $2,240 on a 25-year amortization.

    Where to get a home for less than $1 million in Vancouver

    In the city of Vancouver, which represents less than one-quarter of the Metro Vancouver population, we counted just six enclaves with benchmark prices under $1 million.

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  • Earning, saving and spending money in Canada: A guide for new immigrants – MoneySense

    Earning, saving and spending money in Canada: A guide for new immigrants – MoneySense

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    Getting started

    To get started, here’s an overview of what you need to know about moving to Canada, working in Canada and building a good credit history. 

    The more you know about Canadian money, savings and housing, the better prepared you’ll be. You can even do certain steps—such as opening a bank account—before you arrive. Learn about this and other personal finance topics, including key details about preparing to buy a home in anywhere in Canada.

    Finding a job and earning an income soon after arriving in Canada can contribute to your success. We explain who can legally work here, how to apply for a work permit, how to find credible job postings and what details to look for in a job offer. We also tell you about non-profit organizations that help immigrants find work, sign up for free English classes and more

    Moving to Canada or new to the country? These six major cities have many job opportunities in different fields—plus we look at the cost of living in each.

    From tech to health care, Canada offers plenty of jobs for newcomers—and many of them are included in national and provincial express entry immigration programs.

    Once you move to Canada, it’s important to start building a good credit history—it will have a big impact on your future here. If you plan to borrow money to buy a home or a car, for example, lenders will look at your credit report to decide if they’ll loan you money and how much interest to charge you. Employers, landlords and even cellphone companies may check your credit report. We explain how to build your credit history and how to improve your credit score.

    Some financial products in Canada are similar to what’s available in India, like fixed deposits and GICs. Check out our list.

    We’ve rounded up 15 more MoneySense articles that provide personal finance tips for different life stages—from your first steps in Canada to getting established to planning for retirement.

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  • Where to Buy Real Estate in Canada 2024: Neighbourhood data – MoneySense

    Where to Buy Real Estate in Canada 2024: Neighbourhood data – MoneySense

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    For more information on real estate trends and the top neighbourhoods in each region, as well as insights on the top-ranked regions nationally, return to the national page or select a region from the drop down menu.

    Halifax Regional Municipality, N.S.

    Toronto, Ont.

    Peel Region, Ont.

    York Region, Ont.

    Durham Region, Ont.

    Halton Region, Ont.

    Edmonton, Alta.

    Calgary, Alta.

    Vancouver, B.C.

    North Shore, B.C.

    North Vancouver and West Vancouver

    Tri-Cities, B.C.

    Coquitlam, Port Coquitlam and Port Moody

    Burnaby, New Westminster and Richmond, B.C.

    Pitt Meadows and Maple Ridge, B.C.




    About Zoocasa

    Zoocasa is an award-winning consumer real estate search portal. It uses data and technology to deliver an intelligent, end-to-end real estate experience.

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  • Best places to buy real estate in Vancouver – MoneySense

    Best places to buy real estate in Vancouver – MoneySense

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    Best places to buy real estate in Vancouver

    In the table below, you’ll find the best Vancouver neighbourhoods for real estate purchases. To view all the data, slide the columns right or left using your fingers or mouse. You can download the data to your device in Excel, CSV and PDF formats.

    Source: Zoocasa

    Top three neighbourhoods in Vancouver

    The steep price tag of homes in Point Grey is justified by their extravagant features. Sprawling mansions grace expansive properties that seamlessly blend into meticulously maintained streets. In spite of a 2023 benchmark home price of $2,532,842, Point Grey has seen steady price growth in recent years. In many Vancouver neighbourhoods, the benchmark home price stalled or fell over the last year, but Point Grey’s benchmark price was 6% higher than in 2022. It was 24% higher than in 2020 and 14% higher than in 2018, earning Point Grey a value score of 3.9. 

    Point Grey’s housing stock is mainly luxury houses, and many of Vancouver’s premier amenities are nestled within or near this opulent community. Everything is conveniently within reach, from top-tier schools like Queen Mary Elementary, Lord Byng Secondary, Jules Quesnel Elementary and West Point Grey Academy to exceptional recreational facilities like Jericho Tennis Club, Royal Vancouver Yacht Club and Brock House. While Point Grey may seem like an exclusive gated community reserved for the elite, a mix of residents calls this neighbourhood home, including working professionals, business owners, faculty members of the University of British Columbia, artists, university students and young families. One drawback of Point Grey is its accessibility score of 1.9, which is the third-lowest in Vancouver.

    View Point Grey real estate listings on Zoocasa.

    One of the more expensive areas of the city, Dunbar is located near the University of British Columbia campus. It’s home to a mix of high-income people and older residents who bought in years ago. That’s why you’ll find everything from enormous mansions to small bungalows in this neighbourhood. And it’s why Dunbar had a 2023 benchmark home price of $3,044,625. However, home prices aren’t increasing as fast as those in other Vancouver neighbourhoods. The benchmark price remained unchanged last year, and it was 12% higher than in 2020 and just 7% higher than in 2018. As a result, Dunbar has a value score of 1.8. Its neighbourhood economics score of 5.0 helped propel it to the number two spot on our list.

    Residents in this area love the local golf course and their easy access to the forested trails of Pacific Spirit Regional Park. Indeed, the area has a lot of parks—as well as riding stables nearby. While there are several great public schools in Dunbar, the area is known for its private schools, including Crofton House and St. George’s. Dunbar has a family feel, with many baseball diamonds and soccer fields for extracurricular activities. It’s no surprise that it has Vancouver’s highest concentration of households with children (at 51%). Because the housing stock is mostly single-family homes, Dunbar is not as accessible as other areas of the city, but it still has a decent accessibility score of 2.9 out of 5. 

    View Dunbar real estate listings on Zoocasa.

    Killarney is perched on East Vancouver’s south-facing slope, offering a scenic view of the Fraser River. Housing costs in this area are relatively more reasonable compared to downtown, offering home buyers a balance between affordability and proximity to the city centre. But having seen significant price growth in recent years, homes here are also a great investment. Killarney’s 2023 benchmark home price was $1,677,192, which was 1% higher than in 2022, 30% higher than in 2020, and 27% higher than in 2018. That works out to a value score of 4.4.

    As one of the newer neighbourhoods in Vancouver, Killarney radiates a stronger connection to nature and a distinct lack of congestion. However, it falls short in terms of accessibility, earning a neighbourhood accessibility score of only 0.7. Known for its tranquility, Killarney features small shopping plazas and residential cul-de-sacs. With four public schools, including the notable Killarney Secondary—the largest secondary school in Vancouver—the neighbourhood has a large number of households with children (47%).

    View Killarney real estate listings on Zoocasa.

    In 2013, Vancouver home prices followed a trajectory similar to those in other markets; the benchmark price continuously climbed until it reached a peak of $1,210,700 in July, and then it gradually declined, finishing the year at $1,168,700. Despite higher borrowing costs last year, the Vancouver real estate market still experienced price growth, with the benchmark price rising by about 5% from January to December. Most of this price growth occurred in the first half of the year, driven by an exceptionally limited supply of homes. 

    Demand for the more affordable home types stalled, while the luxury market saw less of a slowdown. “The price of luxury homes went up quite a bit last year,” says Geoff Pershick, a local eXp real estate agent. (Zoocasa, the author of this study, is wholly owned by eXp World Holdings.) “More homes sold for more money than expected, and it speaks to the influx of capital that is coming to the area.” 

    High interest rates deterred many sellers from listing last year and prompted many buyers, including cash buyers, to postpone their purchases. But better conditions are already emerging for 2024. 

    “The global wealth shift is ushering in an increasingly diverse group of buyers to Vancouver,” says Pershick. “Last year’s uncertainties might have slowed down [real estate] activity, but with interest rates finding their footing and a sense of stability returning, I’m expecting a resurgence of cash buyers.”

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    What’s next for real estate in Vancouver?

    The number of Vancouver home sales was up about 6% month-over-month in January, and up about 45% month-over-month in February, according to Greater Vancouver Realtors. If this momentum continues, the Vancouver real estate market is poised to have a stronger year in 2024 than in 2023.

    “As interest rates decline, we’re going to see a surge in buyers alongside a decrease in sellers within the Vancouver market,” says Pershick. “This imbalance will drive property prices up and shape a competitive landscape for potential home buyers.” 

    Though buyer sentiment is improving from 2023, the supply of Vancouver homes has remained scarce since last year, pushing the market further into seller’s territory. “Greater Vancouver is consistently grappling with supply challenges, and I don’t think that will change in 2024,” says Pershick.

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  • Best places to buy real estate in Metro Vancouver – MoneySense

    Best places to buy real estate in Metro Vancouver – MoneySense

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    Between December and January, the benchmark home prices in Port Coquitlam and Coquitlam increased by about 3% and 2%, respectively. In Port Moody, the benchmark home price dipped by about 1%, but home prices will likely climb as the spring market kicks off.

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    Burnaby, New Westminster and Richmond, B.C. 

    The city of Vancouver is bordered by Richmond to the south, and by Burnaby and New Westminster to the east. Burnaby and Richmond are B.C.’s third- and fourth-largest cities, respectively, each with a population above 200,000.

    Best places to buy real estate in Burnaby, New Westminster and Richmond 

    In the table below, you’ll find the top neighbourhoods for real estate purchases in Burnaby, New Westminster and Richmond. To view all the data, slide the columns right or left using your fingers or mouse. You can download the data to your device in Excel, CSV and PDF formats.

    Source: Zoocasa

    Top three neighbourhoods in Burnaby, New Westminster and Richmond

    Situated in Richmond, Hamilton is just north of Annacis Island and the Annacis Channel, and west of Queensborough. Hamilton’s 2023 benchmark home price was $947,750 as a result of a consistent and stable increase in property values. The benchmark was 3% higher than in 2022, 37% higher than in 2020, and 22% higher than in 2018. This trend contributes to Hamilton’s impressive value score of 4.6.

    Hamilton is a distinctive neighbourhood with a blend of residential properties, predominantly single-family homes, alongside businesses and recreational facilities. It offers various amenities such as the Hamilton Community Centre, Hamilton Highway Off-Leash Dog Park, and the Bridges Marina. The neighbourhood boasts several parks, including the well-kept and popular Hamilton Community Park. Locals appreciate the trails that lead to the waterfront, a popular spot for dogs to take a swim. Hamilton has the highest percentage of households with children (57%) in this part of Metro Vancouver, by a significant margin. Families can send their kids to Hamilton Elementary School, the Choice School for Gifted Children, or Queen Elizabeth Elementary School. However, Hamilton has the third-worst accessibility score among the three cities, at 0.3.

    View Hamilton real estate listings on Zoocasa.

    In the southwest corner of Richmond lies the historic community of Steveston, where the powerful Fraser River meets the Pacific Ocean. Steveston is bordered by Williams Road to the north, the Fraser River to the south, No 2 Road to the east, and the Strait of Georgia to the west. The neighbourhood’s 2023 benchmark home price was $1,529,183, considerably higher than those of surrounding neighbourhoods. Home prices in Steveston Village have been on a slight upward trajectory. The benchmark home price was 1% lower than in 2022, but 28% higher than in 2020 and 17% higher than in 2018. As a result, Steveston has a modest value score of 2.0. However, it has by far the highest neighbourhood economics score in the region (5.0), which helped push it to the top. 

    So, what brings buyers to this neighbourhood? Following the closure of the fish canneries, significant residential development has transformed the area, with the emergence of new luxurious condominiums and townhomes reshaping the landscape. Residents benefit from outstanding local dining options, unique boutiques, a picturesque boardwalk that is popular among both tourists and locals, beach access, parks, playgrounds and biking trails—all enhancing Steveston’s charm. While primarily residential, Steveston has several parks near schools like Diefenbaker and James McKinney Elementary, along with the expansive Manoah Steves Neighbourhood School Park, which features four sports fields, three ball diamonds and a playground. The neighbourhood has one of the highest concentrations of households with children (49%).

    View Steveston Village real estate listings on Zoocasa.

    Nestled in North Burnaby, the Brentwood Park neighbourhood has traditionally offered a balanced mix of affordable single-family detached homes and condominiums. With The Amazing Brentwood housing spectacular developments, Brentwood Park is poised to become one of the largest urban destinations in North America. In 2023, the neighbourhood’s benchmark home price stood at $881,425. Home prices in Brentwood Park haven’t risen as rapidly as those in other neighbourhoods on our list. The 2023 benchmark price was 1% lower than in 2022, 18% higher than in 2020, and 11% higher than in 2018. This translates to a value score of 3.2. But Brentwood Park has one of the highest neighbourhood economics scores, 3.1, in this part of Metro Vancouver, behind only Steveston. 

    The neighbourhood boasts stunning views of Burnaby Mountain and the North Shore Mountains. Beecher Park offers forested areas, a sports field, a children’s playground and Beecher Creek, a local salmon spawning habitat connecting to Still Creek. Eileen Dailly Leisure Pool & Fitness Centre is well known for its swimming pool, children’s water play area, sauna and steam room, weight room, and more. The area is also home to the McGill Branch of the Burnaby Public Library. Public schools in Brentwood include Brentwood Park Elementary, for kindergarten to grade seven, and Alpha Secondary School, which offers an advanced placement program allowing students to take college-level courses while still in high school.

    View Brentwood Park real estate listings on Zoocasa.

    What happened in the real estate markets of Burnaby, New Westminster and Richmond?

    Real estate activity was stable in all three cities last year, and there was much less fervour compared to previous years. Home prices experienced modest price growth from January to December 2023, though this was due more to tight competition than increased demand. 

    Burnaby East experienced the most price growth, with the benchmark price rising about 7% from January to December. But the area is also the most expensive, with a December benchmark price of $1,157,400. New Westminster had the most affordable homes, with a benchmark home price of $815,600 in December, up about 4% from the beginning of the year. In Richmond, the benchmark home price rose from $1,109,200 in January to $1,153,400 in December—an increase of about 4%. 

    “Interest rates played a pivotal role in shaping affordability [in these areas], and there was a noticeable withdrawal from the market among potential buyers,” says Pershick. For the three cities combined, total home sales across all property types in 2023 came in below 2022 levels.

    What’s next for real estate in Burnaby, New Westminster and Richmond?

    Between December 2023 and February 2024, benchmark home prices in all three cities inched upward, suggesting a stronger start to the year than in 2023. Of the three, Richmond’s benchmark price increased the most, rising about 2% to $1,173,100 in February. Burnaby South has also experienced a decent increase, with the benchmark price rising by about 2% to $1,113,500 over the same period. 

    As of February, year-to-date sales for detached properties in Burnaby and Richmond are up compared to 2023. However, it’s Burnaby condo apartments that have gotten the most attention, with year-to-date sales up by about 19%. 

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  • Best places to buy real estate in the Greater Toronto Area – MoneySense

    Best places to buy real estate in the Greater Toronto Area – MoneySense

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    Top three neighbourhoods in York Region

    Nestled in Markham, Vinegar Hill is encompassed by Highway 7 to the north, Highway 407 to the south, and streets situated just west and east of Main Street South, with the Rouge River serving as its natural border. The neighbourhood is a sought-after residential destination known for its picturesque settings and historical charm. In 2023, its benchmark home price was $1,126,400—which was 44% higher than in 2022, 72% higher than in 2020, and 40% higher than in 2018.

    The community’s name is thought to have connections to either a cider mill located on the east side of the river valley or barrel makers who filled their barrels with vinegar to assess their straightness as they rolled down Markham Road. Slightly more than half (53%) of households in the area have children. Despite its desirability, Vinegar Hill has a relatively low accessibility score of 1.8—which is still higher than the other two top neighbourhoods in York.

    View Vinegar Hill real estate listings on Zoocasa.

    Located in the northeast part of King Township, Pottageville stands out for its distinctive topography and environmental importance. It’s situated atop the elevated ridges of the Oak Ridges Moraine and within the Ontario Greenbelt corridor, and it features an abundance of ranch-style bungalows and older homes. Coming in second among our top three neighbourhoods in York, Pottageville had a benchmark home price of $1,657,917 in 2023, and a value score of 3.3. The benchmark price was 55% higher than in 2022, 27% higher than in 2020, and 113% higher than in 2018. With above-average levels of household income, education and home ownership, Pottageville has a perfect neighbourhood economics score. 

    It also has an above-average number of families with children, representing 56% of households. With easy access to the Greenbelt Route, a province-wide bike trail, it’s the perfect area for bikers. Pottageville may only have a general store, a gas station and a few small businesses, but there’s ample recreational space centred around Pottageville Community Park, which features a playground, a baseball diamond, tennis courts and soccer fields. There’s a train station a 10-minute drive away, making it easy to commute to Toronto, but the neighbourhood still only has an accessibility score of 0.4.

    View Pottageville real estate listings on Zoocasa.

    Concord benefits from excellent commuter highway access, with both Highway 407 and Highway 7 passing through. In 2023, Concord’s benchmark home price was $742,158, which was 2% lower than in 2022, but 9% higher than in 2020 and 54% higher than in 2018. The area has the second-highest value score (3.6) of our top three York neighbourhoods, and it does well on neighbourhood economics as well, scoring 4.6. 

    Concord residents often spend their time enjoying recreational and leisure activities. One popular destination is Vaughan Mills shopping centre, with its many retail stores, entertainment options and family-friendly attractions. Locals can also explore Concord’s natural beauty while visiting Boyd Conservation Area or Black Creek Pioneer Village. Many families live in modest brick detached homes and townhomes with single-car garages, which are popular in the area.

    View Concord real estate listings on Zoocasa.

    What happened in the York Region real estate market?

    In 2023, York Region’s home prices fell less than those in other regions of the GTA. In January, the benchmark home price was $1,285,583, and by December, it had dropped 0.4% to $1,281,020. But with mortgage rates as high as they were last year, the market was never able to gain much momentum. 

    “Last year, as banks tightened their borrowing criteria, we saw a decrease in sales while average prices remained relatively flat or decreased just a little,” says Kirby Chan, a local eXp real estate agent. “It was tough,” he says, because even though prices came down a bit, interest rates were so high that mortgage affordability suffered.

    Buyer uncertainty played a big role in slowing down home sales, as many people were hesitant to enter the market amid the anticipation of rising interest rates. The number of home sales in York stayed above 1,000 during the spring and summer, but trickled off in July. In December, there were only 612 sales.

    What’s next for real estate in York Region?

    January started off with a boost in home sales, suggesting the market is rebounding. Home sales were up about 27% from December and about 42% from January 2023.

    “Buyers are coming out now into the market, and there’s a positive outlook on how the market is going to look this year,” says Chan. “But if buyers wait until interest rates come down, then prices will go up and their buying power will go down.” 

    York Region buyers could face more competition than last year, as would-be Toronto buyers are attracted by the area’s comparable affordability. “With the city of Toronto increasing property taxes soon, I think there’s a good possibility this will drive more buyers into York Region and areas like Markham, Richmond Hill and Vaughan,” says Chan. 

    Assuming mortgage rates go down and buyer confidence returns, Chan expects this year to be a strong one for York Region real estate. “Sales-wise and price-wise, I think we’re going to have a record year in 2024. Last year, the government raised interest rates to cool everything down, and so there were fewer sales. That means there’s a lot of buyers out there waiting, and this pent-up demand is going to push prices even higher.”

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  • Best places to buy real estate in Halifax in 2024 – MoneySense

    Best places to buy real estate in Halifax in 2024 – MoneySense

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    Best places to buy real estate in Halifax

    In the table below, you’ll find the top Halifax neighbourhoods for real estate purchases. To view all the data, slide the columns right or left using your fingers or mouse. You can download the data to your device in Excel, CSV and PDF formats.

    Source: Zoocasa

    Top three neighbourhoods in Halifax

    For the second consecutive year, Cole Harbour is the top place to buy a home in HRM. Located east of Dartmouth, Cole Harbour is named after a local harbour. It has easy access to Highway 107 and Highway 111, making it an attractive location. Cole Harbour’s 2023 benchmark home price was $505,774, and that’s the result of consistent price growth in recent years. The benchmark price was 13% higher than in 2022, 66% higher than in 2020, and 69% higher than in 2018, giving Cole Harbour a value score of 4.0. It also has a neighbourhood economics score of 4.3, the third-highest in HRM. 

    The area has several schools—a convenience for the above-average 47% of households with kids. Residents love the area’s beaches and trails, including the Salt Marsh Trail and Rainbow Haven Beach Provincial Park. Cole Harbour is also a popular tourist destination: the quaint Cole Harbour Heritage Farm Museum and Fisherman’s Cove are two must-see stops. However, with the neighbourhood’s accessibility score of 0.6, you’ll likely need a car to get around.

    View Cole Harbour real estate listings on Zoocasa.

    Situated on the Eastern Shore of HRM near the Shearwater Canadian Air Force base, Woodside-Eastern Passage is a popular destination for military families due to its mid-sized community feel. Boasting a dozen eateries, convenient access to Halifax through the Woodside Ferry, the main Nova Scotia Community College campus and abundant character, this emerging neighbourhood proves to be a smart investment and a delightful place to live. Woodside-Eastern Passage’s benchmark home price was $432,486 in 2023, which was 18% higher than in 2022, 64% higher than in 2020, and 97% higher than in 2018. It’s the only neighbourhood in HRM with a perfect value score of 5.0. 

    The area features multiple recent subdivisions that provide a variety of housing options, including semi-detached and detached homes. There are many elementary, junior high and high schools that cater to the 45% of households with children. Like most places in HRM, you’ll likely need a car to live here, though.

    View Woodside-Eastern Passage real estate listings on Zoocasa.

    Located a mere 10 minutes from the airport and 30 minutes from downtown Halifax, the Waverly-Fall River-Beaver Bank area is renowned for its scenic landscape, featuring numerous lakes, expansive open spaces and generously sized lots. It also has the most expensive homes of the top three neighbourhoods on our list, with a 2023 benchmark price of $666,815. That was 8% higher than in 2022, 62% higher than in 2020, and 83% higher than in 2018. Notably, Waverly-Fall River-Beaver Bank has the second-highest economics score on our HRM neighbourhoods list.

    All homes in this area use septic systems; some rely on wells for water, while others are connected to city water. Residential lots are spacious and feature a range of traditional-style homes. Many residences boast lake access, and some even enjoy a lakefront setting. The neighbourhood has many sought-after schools. While the area may have limited amenities, it boasts a well-established canoe and kayak club, multiple daycare facilities, a post office and a convenience store. Living in Waverly-Fall River-Beaver Bank may necessitate owning a car, given its accessibility score of 0.1.

    View Waverly-Fall River-Beaver Bank real estate listings on Zoocasa.

    Unlike the ups and downs of 2022, Halifax real estate prices did not sharply increase or decrease in 2023. The benchmark price consistently rose from January through the end of the spring market and reached a late peak of $530,900 in August. Following this, home prices softened before experiencing a modest rise in December, settling at a benchmark price of $511,600. 

    “In the first quarter of 2023, prices and sales were up, but then the market really slowed down after the spring,” says local eXp real estate agent Richard Payne. (Zoocasa, the author of this study, is wholly owned by eXp World Holdings.) “Properties were lingering on the market longer, and we didn’t see multiple offers on a home anymore. By the second half of the year, buyers had shifted to a more cautious stance, preferring to wait on the fence to see how conditions would evolve.”

    As interest rates rose in the summer, buyers experienced some frustration, which morphed into confusion about what to expect from the market, says Payne. “Once buyers got confused, they didn’t feel confident to make any decisions, and this contributed to the slowdown in market activity.” 

    The uncertainty also influenced buyers’ budgets. “A lack of affordable options, especially in the $400,000 to $600,000 range, pushed many buyers to look out of the core and into more of the suburbs,” says Payne. “Homes in that range were getting more attention as interest rates rose.”

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    What’s next for real estate in Halifax?

    The benchmark home price in Halifax has increased by a little more than 1% since December, reaching $518,500 in January. With demand expected to rebound, price growth will likely continue, though that will depend on the mortgage rate outlook. 

    Payne expects the opposite of 2023 to unfold in 2024—with a quiet start to the real estate market, followed by an active second half. “In the beginning of 2023, activity was fairly up, and then as interest rate hikes were announced, it put the brakes on momentum,” he says. “This year, I anticipate a surge in activity in the second half of the year as buyers catch on to falling interest rates and rush back into the market.”

    Buyers who were sitting on the sidelines last year may be better positioned to join the market in 2024. An influx in buyer activity might also encourage more sellers to list their homes, leading to a much-needed bump in the number of homes on the market. 

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    Zoocasa

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  • Buying pre-construction: What if your home is worth less than you paid? – MoneySense

    Buying pre-construction: What if your home is worth less than you paid? – MoneySense

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    What are your options if you find yourself in this situation? Let’s look at the intricacies of buying a pre-construction home in Canada, why some buyers are having difficulty closing on their purchases, and steps you can take to avoid losing a large deposit.

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    How does buying a pre-construction home work in Canada? 

    Generally, pre-construction homes offer several key benefits. For one, the property is brand new. Unlike with a resale home, you can customize a new home right down to the finishes and countertops. And because the home is new, you can expect to spend a lot less on repairs and maintenance.

    New homes also give you more time to save. With resale homes, you typically must pay the deposit and down payment within a 30-to-90-day timespan. With new homes, the deposit can often be spread over several months or years.

    In case you’re new to buying pre-construction homes in Canada or you’d like a refresher, here are some important details to be aware of.

    Payment schedule for pre-construction homes

    Unlike a resale home when you usually pay the deposit within 24 hours of your offer being accepted, with a pre-construction home there’s typically a deposit payment schedule.

    With a pre-construction home, you’re usually expected to have a down payment of between 20% and 25%. This may sound like a lot at first, but the amounts are spread over several months and years. For example, you may be asked to make a deposit of $3,000 at the time of making an offer, followed by 5% within 30 days of the offer, 5% within 90 days, 5% within 180 days and a final 5% at the time of occupancy.

    Oftentimes, the deposit structure is up for negotiation. If the builder’s payment schedule doesn’t work for you, you should try to negotiate one that does.

    Mortgage rules for pre-construction homes

    In Canada, mortgage rules are the same for a new home as a resale home. For example, you’re required to pass the mortgage stress test in both cases. However, a key difference is timing. With a new home, you don’t know what mortgage rates will be when the property closes. Mortgage rates could be the same, or they could be higher or lower. This adds uncertainty. Without knowing what mortgage rates will be, you actually don’t know if you’ll be able to afford the property in the future.

    There’s also the issue of the property value for mortgage lending purposes. Lenders don’t sign off on the mortgage for a pre-construction home until the time of closing. You make an offer without financing, then hope to get financing at the time of closing.

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    Sean Cooper

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