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Role of Technology in Buying, Selling, and Managing Properties

Role of Technology in Buying, Selling, and Managing Properties

Technology- Just thinking about this word refers to advancement, speed, ease, and efficiency. Over the years, cutting-edge technological advancements have enabled businesses to find new paradigm and horizons of doing work thus enhancing the speed, quality, and above all provision of convenience and ease.

Recently, the specific area where businesses leverage a lot from technology and tools is communication. With advanced methods, it has not only become easy to spread the message widely through social media networks but also impact greatly on readily accessing information.

Real Estate Industry though considered to be one of the slow adopter but benefited immensely from technological tools. Simplification can be witnessed at each step of buying, selling, or even managing properties.

There were times when one has to cruise for hours daily in search for “For Sale/Rent” sign boards outside property. To work closely with a real estate agent, taking time to physically visit dozens of properties looking for the ideal one. Indeed that was a lot of work. Buying or selling a property is still not that easy but surely technology has enabled further speeding up the process and making it hassle free for both buyers and sellers.

Lets dig deeper and discuss all factors highlighting the role of technology and how its reshaping real estate. 

1. Property Search and Discovery through Listing Portals

Websites and applications are organized enabling the listings of properties to be accommodated with advanced filters. The information that used to be in classified ads of newspapers, is now easy available in mobile applications and web to easily narrow down the preferences of searching the property just right for you.

These listing online platforms are incredibly effective not only for buyers but for sellers as well for selling and managing multiple properties. Moving beyond from pictures, videos, now virtual tours are there allowing potential buyers to have complete idea of the property which was only possible earlier by physically visiting and inspecting the premises.

Users of these platforms can set their budget, even set alerts that if some ideal property as per their preferences is listed they get notified immediately. These smart features save the cumbersome task to search and hunt for ideal property. 

This easy discovery of properties has been a great help for audience globally. If you are planning to move to a newer country or a geographical location, these listing platforms and portals help you understand the pricing trends, outlook, and overall neighbourhood locations, such as shopping centres, highways, and others all helping you to make well informed decision beforehand moving to that location.

2. Property Management through Softwares

Various tools and programs are thought through and developed to automate many tasks related to property management. Rental Collection, Screening of tenants, scheduling a maintenance work. These tools help with managing various properties information and tasks associated with them paper free but digitally managed in cloud. All this information is readily available in a smartphone helping landlords and property owners to make informed decisions with ease. 

3. Interactive viewing through Virtual Reality

Since we were discussing the virtual tours offered on property listings applications and web portals, lets discuss in details what we mean by interactive viewing.

Advanced technological breakthrough in Virtual Reality (VR) and Augmented Reality (AR) completely revolutionizes how properties are being viewed. The immersive Virtual tours are done through long distances getting complete perspective of the property. This completely eliminates the need for physical presence while having near to real vivid experience.

Adding Augmented Reality in above tours, one can actually envision customizations or renovations to evaluate how that would look in real. So these tech advancements have changed the viewing dimensions of any property. This viewing engaging and also getting better day after day. 

4. Design and Architectural Innovations through Augmented Reality (AR) & AutoCAD

Augmented Reality (AR) has more implications and uses not only in virtual tours but design and architectural innovations. Drones are being used to do Site Surveys and all pictures videos captured are stacked up to create a complete 3-D model of the site. The design and construction is being done using AR technology. Easy customizations are made to finalize how the building or site would look like. It enhances the collaboration and cooperation among engineers, designers, and architects to avoid errors and delays.

Interior Designing of any property is mostly done through AutoCAD a software tool in which whole design is being put in 3-D model and variations of furniture, fixtures, types of wall designs, paint colors are applied to have immersive view and outlook. This helps in planning a major innovation or design changes. It not only saves time and paint the real picture of design aesthetics but also efficient in generating innovative modern designs.

5. Market Trends & Insights: Data Analysis/Predictive Analysis

Big data and analytics tools now provide real estate professionals with real-time market data and insights. This speed in information flow having up-to-the-minute data as being updated on online platforms regarding values of properties, sales comparisons, enable all parties associated with real-estate including buyers, agents, sellers, to have accurate transparent information.

Thus every decision related to properties is well informed and backed by a Real-time data. The organization of data not only helps in buying or selling decisions i.e the updated pricing but when coupled with Artificial intelligence and predictive analytics to determine property valuation, identifying investment opportunities, and predicting property market trends.

With advanced AI and Machine learning algorithms past data is evaluated to find next market cues, and economic factors to offer insights into setting up property values and estimating rental returns from a specific property.

6. Smart home Technologies & Energy Efficiency

Internet of things (IoT) is one of the technological milestone achieved and modern real estate has reaped the best of benefits. Smart thermostats, security & alarm systems, lighting controls, provide energy efficiency, convenience, better home/office/building security. Solar Panels for cutting electricity costs, and integrated smart home hubs allowing property owners to provide tech enhanced comfort and luxury to tenants.
It is the base of connected living where devices such as lights, appliances, entertainment devices interact with each other as per your preferences multiplying the comfort of living.

Energy Efficient technologies have boosted the sustainability of real estate. Such properties are in high demand, as they reduce utility costs and have a positive impact on the environment as well. 

7. Digital Financing & Transactions

Blockchain technology has been used widely for keeping property records in a safe, transparent manner. Smart contracts a one of wonder of blockchain are type of automated agreements having terms encoded in the digital makeup. It verifies property transactions and very effective for eliminating intermediaries thus minimizing the frauds and risks in buying/selling of properties.

Also the ledger system offered by blockchain maintains a complete record of property ownership providing an extra layer of protection against tampering of records.

Electronic Signatures and online digital transacting services are enabling buyers and sellers to quickly close on deals with ease. These tools eliminate the need for in-person meetings and paperwork, managing transactions safely and with far more superior efficiency. 

Conclusion:

Technological tools are embedded in the pillars of real estate, as discussed above. No one can deny the importance of having these tools in place for dealing with properties with ease and comfort. Whether it’s in developing, managing, buying, or selling, at each stage, technology undoubtedly offers benefits. This is how the real estate industry is currently shaping up by openly adopting the latest technological tools.

About H.Jaggi Homes

Harpreet Jaggi Group started its journey almost 3 decades back. The Group has firmly established itself as a trustworthy and dependable organization in Real Estate industry that delivers quality. You can rely on expert solution to sell your house on mortgage.

CategoriesUncategorized

How to Sell a House with a Mortgage in Mississauga

How to Sell a House with a Mortgage in Mississauga

A mortgage is a financial loan one acquires to buy a house. There are various types of mortgages depending upon the terms and interest rates for the facilitation to own a house. Whatever the terms, once the loan is paid-off, the house is fully owned fair and square.

This article would elaborate all those important aspects for selling the house on a mortgage in Mississauga. Which option would be best for you? How much complexity is involved? Our focus of covering this topic is to help you get well informed of all situations before going for a final decision.

To better address the concerns of you all, lets deep dive in the type of mortgages in Canada. This would help you to understand in which category you are currently or expected to be. And which factors to consider for making a smoother sale process as per the type of Mortgage.

Types of Mortgages

1. Conventional Mortgage: Open & Closed Types

The conventional type mortgages are simple as they do not exceed 80% of the purchase price or appraised value of the houses, whichever is less. This type of mortgage does not have to be insured against default.

Open types offer flexibility to pay-off large sums or even all of the mortgage without penalties before due time. This type has usually high interest rate than closed types. It is best recommended to avail if there is a good probability to pay off in less time so to avoid penalties.

Closed mortgages are referred to as security of fixed payments against fixed repayment tenure. These types have high penalties if one pay off before maturity but interest rate is usually low.

Selling Scenario by Paying Off the Conventional Mortgage

If you want to sale your house with the conventional mortgage either open or close, you need to first discuss it with your lender. This is the first and foremost step to determine your outstanding mortgage balance, including any prepayment penalties that may apply on closed types specifically.

Its better to involve an expert real estate agent to determine the fair value of your house. Experts help you in listing your house and prepare it for the best presentation to attract buyers, however you can do all these steps by yourself as well.

Once you are at the phase where you have received desired offer, keep your lender in loop related to the impending sale. At this phase you will receive clear directions on how to proceed with the mortgage payoff. It would include all prepayment penalties as well if you have a closed mortgage.

Smooth closing is to pay-off lender from the proceeds of the sale. You’ll need a lawyer and notary to complete all legal documentation for ensuring that mortgage is paid in full and the house title is transferred to the new owner.

Considering the simplicity, usually paying off existing mortgage is mostly considered by the sellers. 

2. Portable Mortgage

As the name refers, this type of mortgage is transferrable to a new home without paying any penalty. It is mostly considered when one has preplanned shifting to other areas in the vicinity or just to be on the safer side.

You should consider options of portable mortgage and discuss with your lending partner related to such options as it would be very easy to shift home, if needed. Relying on good Realtor would be the key here who would help you find related options that can be covered as per your existing portable mortgage plan.

Selling scenario of portable mortgage house is relatively easy as you are porting your mortgage. So no need to pay off existing mortgage and arrange new for the next house.

3. High-Ratio Mortgage aka Insured Mortgage

High-Ratio mortgages are the ones having down payments less than 20% of the house’s value, and they are called insured mortgages as they require mortgage loan insurance from providers like CMHC (Canada Mortgage and Housing Corporation). The cost of the insurance is paid for by the borrower and is generally added to the mortgage amount.

Selling Scenario of High-Ratio mortgage house is similar to conventional mortgage discussed above but the pay-off mortgage amount includes the Insurance Premiums as well that need to be settled. 

4. Reverse Mortgage aka Home Equity Conversion Mortgage

This type of mortgage is in fact a financial product enabling homeowners aged 55 and older to convert a portion of their home’s equity into tax-free cash without the need to sell or move out of their home. It’s a good option for you if you have a significant home equity but less financial monthly income thus to overcome living expenses, traveling costs, medical expenditures, or to pay-off other mortgages, etc. Unique feature of reverse mortgage is that there is no monthly/quarterly repayment cycle.

Selling Scenarios of reverse mortgage homes are:

a. To repay the loan received over period of time

As there are no monthly repayment schedules. The total loan repayment is done when you leave the house or you or your heirs wish to sell for the repayment of loan. Interestingly, reverse mortgage is designed with a “no negative equity guarantee,” which means the amount owed can never exceed the fair market value of the home at the time of repayment. To put in more simple words, the loan amount can never exceeds the actual worth of the home.

b. Settling mortgage separately

Although reverse mortgage finance utility is designed for long-term use, but if you want to settle it, can be done without any prepaid penalties. After that house would be treated as without mortgage. 

Overcoming Selling Complications of Mortgage homes

Above types and cases explained are usual and typical situations for selling houses on mortgages. Though lets discuss some cases where conditions get complex and how to overcome them.

1. Buying new and closing dates of existing mortgage house are not matching

We have discussed a scenario where you are selling a house (impending sale) and you pay-off the existing mortgage from proceeds of the sale. There may be a situation where these dates don’t match due to any reason. Sales proceeds is in delay and you have to move to a new place

Bridge Financing

Bridge loans help you cover the down payment on the new property until you receive the proceeds from the sale of your current home.

It can be availed by a small set-up fee charged by the lender in addition to cost of the interest as you’ll be carrying both properties for a short time. The rate charged on the bridge loan is about 2-3% above the bank’s prime. 

How to avoid it?

To overcome this problem, there is a type of short-term mortgage facility called Bridge Financing.

2. Selling a house with mortgage but without clearing or porting

A scenario where you want to sale the house without clearing the mortgage and no intention of porting it as well through portable mortgage option discussed above. It is a tough spot as this scenario is complex. 

Assumable Mortgage

Assumable Mortgage is a type of mortgage where buyer agrees to take over the existing mortgage from the seller rather than obtaining a new loan.

Even if the mortgage is assumable, you need to get your lender’s approval to transfer the mortgage to the newer buyer. 

How to avoid it?

It typically involves the process of “selling subject to the existing mortgage” or “selling with an assumable mortgage.”

Please ensure first that your mortgage is assumable or not from your lending partner. As all mortgages are not assumable. It is written under terms and conditions.

Challenges and complications of Assumable Mortgage

Following are crucial considerations because of complications of this type of Sales scenario.

a. Not all mortgages are assumable, and lenders may charge extra fees for allowing mortgage assumptions. Make sure to clarify all costs involved with your lender.

b. If the buyer defaults on the assumed mortgage, you might still be held partially responsible, depending on the terms agreed upon with the lender and the buyer.

c. Selling a mortgaged property without clearing the mortgage can limit your pool of potential buyers, as not everyone may be eligible or willing to assume the existing mortgage.

Solutions:

Proper Drafting of Agreements: It’s essential to seek legal advice from a real estate attorney or notary to ensure all necessary contracts and agreements are properly drafted.

Clearly Discuss the Terms of Mortgage transfer: In a transparent manner discuss the terms of the mortgage transfer with the buyer and lender, including any additional terms or conditions related to the existing mortgage.

Only Rely on Professionals: It’s crucial to work with professionals, including a real estate agent, real estate attorney, or notary, to navigate the legal and financial complexities of selling with an assumable mortgage.

As the process can be complicated, you should consult with professionals and your mortgage lender to understand all the implications before proceeding with this type of sale.

Conclusion:

The last solution point mentioned above is actually applicable to all selling scenarios. It’s essential to work with experienced professionals throughout the sale process, such as real estate agents, mortgage brokers, and legal experts. They can guide you through the intricacies of selling a house with an outstanding mortgage, ensuring a smoother and faster transaction.

Always check with your mortgage lender for specific details related to your mortgage type, as policies and conditions can vary between lenders and mortgage products.

Happy Selling ! and we are here to help you navigate through all types of mortgages sales scenarios. 

About H.Jaggi Homes

Harpreet Jaggi Group started its journey almost 3 decades back. The Group has firmly established itself as a trustworthy and dependable organization in Real Estate industry that delivers quality. You can rely on expert solution to sell your house on mortgage.

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Mississauga House Prices and Selling Trends

Mississauga House Prices and Selling Trends

Mississauga is a beautiful suburban city and is an integral part of GTA (Greater Toronto Area), just to the west of Toronto and situated on the shores of Lake Ontario. Curious about the pulse of its real estate market? Dive into our insights on current Mississauga house prices and trends, guiding you towards informed decisions in this dynamic market. Being the sixth-largest city in Canada and the second-largest city of the province Ontario, with a population estimating over 800,000 and covering an area of 292.43 sq km, Mississauga is considered to be one of the top places to live. Because of its safe multicultural community, great transportation systems, a good quality of life, and a thriving central business hub, it has been able to garner popularity among immigrants and students. 

Having geographic location to its advantage, the city gets leverage to have easy access to all amenities offered by Toronto along with adjoining Malta city, where head-offices of all major business centre’s are located.  

Housing Market in Mississauga

Mississauga’s high influx of permanent resident newcomers and “express entry” Immigration programs for skilled and well paid workers has contributed a lot for driving high housing demands both for rentals and purchase. Decent rental yields and soaring prices of housing has created fairly good investment opportunities. 

In general the overall housing market in Mississauga is pretty diverse, comprising condo apartments, semi-detached homes, single family homes, and townhouses. The versatility and variations in property listings of houses clearly manage to cater different budgets, and needs, covering a wider audience of rentals, buyers, and investors.  

This variety allows for diversified investment opportunities and appeals to a broad spectrum of buyers and renters. Continuous rise in the interest rates has already impacted the Canadian housing market. But the growing industrial sector and various initiatives of government favoring housing market creates a lucrative opportunity of investing in Mississauga’s real estate.

Housing Prices Trends in Mississauga

As per the Toronto Regional Real Estate Board, the average price for a home in Mississauga was $1.04 million in March 2023, elevation of 2.6 per cent from February 2023 but declined 12.3 per cent compared to March 2022 last year. In general the housing market in Mississauga has experienced a decline in prices for the last couple of years but still holding base better in comparison to nearby cities such as Brampton and Caledon. 

Detached houses are the ones who have witnessed the sharp declines in overall price this year comparing last year. They averaged $1.55 million by the end of March 2023. Though its gradually increasing as compared to Jan 2023 which was around $ 1.3 million but it used to be whopping $2 million in Jan 2022.  

From the data received from Toronto Regional Estate board, refer to the figure of pricing trends of detached and semi detached homes in Mississauga.
Semi-detached houses are averaging $ 1.06 million, adding again smaller percentage rise from previous months but lower in terms of last year.
Townhouse-style condos up for sale averaging $800,000, which is an upward trend in comparison from last few months, but used to be much high last year. This is 14% down trend pricing from last year 2022. In Feb 2022, Townhouse-style condos were averaging over $1 million.
Apartment-style condos are averaging $600,000, another downward trend comparing last year, collectively a 14% drop in average prices.

Housing Selling Trends in Mississauga

The average residential sale price is expected to increase between 2% to 8% this year, resulting in lower number of listings but better outlook in terms of affordability. Most of the Canadian citizens consider ownership of home as the best long term investment.

More than 500 homes sold as per data extracted for March 2023. The average days one house stays in market before selling was around 17 days. By the end of March there were more than 850 active listings of houses for sale in Mississauga.

Detached Houses Sales were around 200 and it took an average of 14 days to sell a detached house. By the end of March 2023 there were 315 active listings.

Semi detached house has an average of 12 days on market and active listings were recorded at 58. around 60 semi detached homes sold on average.

Attached house has an average of 11 days on market before selling and town house style condo has an average of 18 days. Apartment styled condos has an average selling trend of 200 units per month and they usually stay 23 days in market before sale.

Conclusion

The future outlook of the year is promising as there is a potential expansion of the Greenbelts aiming to construct 50,000 new homes in Ontario. According to stats received from a knowledgeable Mississauga real estate agent, this whole year’s conditions would be favorable for home buyers. Therefore, if you are considering a long-term investment, this is the best time to chime in. With such conditions, if you have the down payment and financial stability, you’ll be more likely to be the homeowner in Mississauga in 2023. 

About H.Jaggi Homes

Harpreet Jaggi Group started its journey almost 3 decades back. The Group has firmly established itself as a trustworthy and dependable organization in the Real Estate industry that delivers quality. They have a team of professional realtors in Mississauga.