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Buying & Selling Real Estate on Prince Edward Island
Buying PEI Real Estate and Property
Do you know how much money will be needed in order to close your PEI real estate deal? Besides the basic purchase price, buyers face legal fees and disbursements (plus GST), which are the out-of pocket expenses a lawyer/notary incurs. Then there are closing adjustments with the seller – taxes, rental income, condominium maintenance, and some utility charges. And don’t forget about the costs of arranging a new mortgage which can include application and appraisal fees. For resale PEI homes, these “extras” can easily add 1 1/2% to 2% onto the basic purchase price.>
Do you know what needs to be done after the deal is closed? Once your offer has been accepted the work has just begun. Future steps include arranging for monthly mortgage payments and PEI property taxes, finding the right insurance coverage, transferring your utilities and arranging for your move.>
Avoid any surprises by having Ron Barrett, a CENTURY 21 real estate professional guide you through the necessary steps. Rely on his expert advice to keep you informed and prepared as each step of your PEI real estate purchase unfolds.>
It’s just one more way that a CENTURY 21 real estate professional takes the anxiety out of buying your next PEI home.>
Step 1: Defining What You Want
Start by creating a prioritized list of features you want to find in your short-list of PEI homes and the reasons why. Use it as your search guide, but remember that depending on your funding, you will probably need to make some compromises. In addition, talk to your Ron Barrett, your PEI realtor about where you want to live. Location is a huge part of any move. Ron will help you narrow down your choices by initiating you to PEI real estate market trends and local PEI information like neighbourhood statistics and community links.
Step 2: Figuring Out How Much PEI Real Estate you can Afford
Now that you know what you want, it’s time to see what type of PEI home you can afford. You can start by crunching the numbers yourself using our selection of calculators available on our homepage.
When you’re ready to move to the next step, you can get pre-approved for a mortgage. This process can often be performed in under an hour and it accomplishes two important goals. First, it will tell you how much you can spend on your PEI home purchase and what your monthly payments will be. Second, it tells the seller that you can afford to buy their home.
By definition, a pre-approved buyer has an approved mortgage subject to an appraisal of the PEI property. Many times a buyer can use this pre-approved status as leverage during the negotiation process.
Step 3: Shopping For PEI Homes
Once you know what community you’d like to live in and have an idea of how much house you can afford, its time to start checking out actual PEI real estate listings. Beginning this search online can help save you time since it can help you target PEI homes that meet your search criteria.
Next, begin visiting the PEI homes on your short-list. Ask your Ron, your PEI realtor, to arrange visits and attend open houses that are in your target area and price range. When comparing homes, make sure to look at all aspects of the yourPEI real estate choices. Is the PEI property tax approximately the same? Are both the houses renovated? Do they both have the same amount of bedrooms and bathrooms? Are both houses located on the same or similar streets? Does either house have any encumbrances?
Step 4: Making An Offer on a PEI Property
Once you choose one of the PEI homes, you need to make an offer. Typically this is a very difficult and trying time since both parties have totally different goals. In most cases it is better to have a third party, such as a PEI realtor, negotiate the offer. If you have any personal interaction with the homeowner, don’t give out any information about your move, your current housing status, financial status or your feelings about their property – positive or negative. This could hurt you in future negotiations.
Step 5: Inspection & Insurance for PEI Homes
After your offer is accepted you will need to set up, coordinate and interpret various inspections, including insect, radon, building quality, oil tank, title, etc. You will also need to arrange for homeowners insurance and finalize the mortgageon your PEI real estate purchase.
This is a major step in the buying process and there are many potential problems that can be discovered during this period. These include a leaky roof, radon gas, termite damage, a foundation problem, and wall cracks, to name a few. These problems happen all the time. The difference between closing on your dream PEI home and starting the process all over again is what occurs during the negotiations between you and the seller. Ron Barrett, your PEI realtor, can help make these discussions go more smoothly. You will also have the option of a “walk through” before the closing. This is your last chance to make sure that all of the items that you have agreed upon were completed to your satisfaction.
Step 6: The Final Closing
Before you arrive at the closing, make sure all the necessary paper work and deposits have been completed. If the mortgage, title work, homeowners insurance and other items necessary under local PEI laws are not completed and brought to the closing table, the closing may not happen on time – depending on the contract, this could result in further action including financial penalties and even the loss of your rights to your new PEI home.
Once you close, it’s official – you own your dream home on PEI! But there might be a few things you want to do before you lay out the welcome mat. These include arranging for an alarm system, turning on the electricity, subscribing to the local paper, cleaning or replacing the carpet, arranging for lawn services, etc. This could also be a good time to make some needed renovations.
Feel free to ask Ron Barrett for guidance and information about many money-saving offers available to CENTURY 21 customers.
Non Resident PEI Real Estate purchases. Non-resident PEI real estate purchases are not a problem providing some guidelines are followed to meet government approvals. Cases vary based on size, location and intentions of future usage of the PEI real estate. In general, any individual can own up to 5 Acres and 165 feet of water frontage without seeking governmental approval.
Selling PEI Real Estate and Property
What can you do to prepare your PEI home for showing? What small steps can be taken to increase your chances for a quick sale? Efforts to improve the appearance of your PEI home can contribute greatly to its marketing success. Small efforts such as replacing defective light bulbs; repainting damaged trim areas around doors and windows; cleaning the carpets; and adding finishing touches such as fresh flowers can make all the difference. Selling PEI Real Estate
Step 1: Creating a Marketing Plan
Create a marketing plan for your PEI home that will help distinguish it in your local marketplace and attract buyers to your PEI property. This may include advertising in the newspaper, posting your PEI real estate listing on the Internet, holding an open house and more. Ron will use the CENTURY 21 Customized Marketing System to create a personalized selling program for clients. Its purpose is to sell PEI homes at the best price possible in the shortest amount of time.
Step 2: Setting the Price (evaluation of PEI real estate)
A key part of the PEI real estate marketing plan is setting the list price. If a home is priced to low, you may lose potential gains. If a home is priced too high, potential buyers may be scared away. To determine the best asking price Ron will review with you the cost of recently sold PEI homes as well as the asking price for PEI homes for sale currently on the market, evaluate the competition and study PEI real estate marketplace trends. Ron will use this information to help you reach the right asking price. It is also helpful to discuss other terms and conditions, such as timing and items that can be included with the sale of the home. Both of these can make your home more attractive to potential buyers.
Step 3: Showtime
Now it’s time to get your PEI home ready for the spotlight. Start with a good cleaning, then eliminate any clutter, add a fresh coat of paint and tidy up the yard. Ron will be happy to help you determine those jobs that will be most beneficial to the early sale of your home.
Step 4: Protecting Yourself
In some cases, a home sale can also be an invitation for danger. You should ask for identification and pre-approval letters as well as lock up valuables, make sure that pets are controlled when there is a viewing, and remove dangerous items. Remember for sale signs bring in more than buyers so ensure that children don;t answer the door and talk to Ron for additional tips.
Step 5: Making the Deal
A buyer has made an offer – now it is time to negotiate. Rely on Ron to guide you through this process. He will help you arrive at an acceptable price, terms and conditions. Once you have accepted an offer, help keep the deal together by meeting deadlines and criteria, including home inspections, appropriate buyer visits, scheduled deposits and other steps. In fact, during this period there may be a re-negotiation of the accepted offer price depending on the outcomes of these visits. As the closing nears, you may also need to perform repairs or do additional work to the house as agreed upon in your contract. In addition, you will need to have the house “broom clean” prior to the closing so that the buyer can complete a final walk through. When you finally arrive at the closing table, come prepared with the appropriate certificates and approvals. Once the money has exchanged hands and all the papers signed it’s time to hand over the keys and concentrate on your next big project – getting YOUR new PEI home in order.
Century21 and the PEI Real Estate Market
What Century21 and Ron Barrett can do to help you buy or sell PEI Real Estate
Today, our world is a global village. For PEI home sellers, that means that a buyer could be anyone from around the corner to around the world, and for those looking to buy PEI real estate from other parts of the world, the Internet is key. With over 100,000 brokers and sales associates in over 30 countries and territories, Century 21 Real Estate Corporation is part of the largest real estate referral network in the world – connecting potential buyers and sellers of PEI real estate with other real estate professionals around the globe!
In addition to corporate strengths, Ron Barrett himself is aggressively marketing PEI real estate listings across the globe through various internet resources including his own two web sites. Ron has traveled to Toronto, Las Vegas, and China to meet with prospective PEI real estate buyers and promote PEI real estate and his clients’ PEI homes and properties.
Email Campaigns, Direct Marketing Techniques, as well as realtor handshaking are but a few additional tools that he uses to find you the right PEI home or market your PEI real estate listing.
It does not end with these methods. Always innovative and opened to new venues, Ron Barrett continues to experiment with new cutting edge methods and refine their usefulness in regards to the marketing of PEI real estate.
When homebuyers and sellers think about real estate, they think of the CENTURY 21 brand. On PEI they think of Ron Barrett and Century 21. In fact, according to a national survey, the CENTURY 21 Brand was the most recognized name in real estate by a wide margin. Put the power of this international brand name as well as the local recognition of PEI realtor Ron Barrett to work in your local PEI real estate market to help sell your PEI home faster for the best price possible, or help you find the next place you'll call "home sweet home."
Contact Ron today for more information on the Century21 Advantage and how he can help you market your PEI home or find the perfect PEI real estate package!
Is PEI Real Estate Investment right for You?
If you have been wondering if an investment in PEI real estate is right for you then here are a few ideas you can consider for great investment opportunity in Prince Edward Island real estate. Ron and Century21 can help you decide!
PEI Real Estate Rental Market
As a realtor working in Summerside I see many great investment opportunities in the PEI real estate market, particularily in rentals. Summerside offers a great many smaller, well priced PEI homes and properties from $60,000 and up that afford all real estate investors, especially those just starting out, the chance to invest in PEI real estate and become a landlord. In addition to the single family units there are also many multi-family units available from under $100,000. These may be over-under duplexes or older homes that have been converted to apartments. Alternatively for the more adventurous investor there are larger homes available that are still single family dwellings that could be converted to multi-unit. Although less popular in terms of rentals, there are PEI properties for sale in the country that may also be used as rentals and still represent an investment in Prince Edward Island real estate.
Tourism and Prince Edward Island Real Estate
Prince Edward Island is a popular tourist destination and as such, tourist accomodations make up a large part of the PEI real estate investment market. Tourist accomodations fall mainly into 2 groups, bed and breakfasts and smaller hotels/motels. Bed and Breakfast can be as simple as a family home that has been renovated to include an extra bedroom and bathroom, right through to major PEI real estate investments that separate the guests and the owners. Recently a home in Summerside was converted to a Bed and Breakfast and now has 6 designer rooms downstairs for guests while the owners have an apartment upstairs. This represents an investment exceeding $500,000 and therefore is a major investment in the local PEI real estate market. You should be aware of all government standards that must be followed as well as those standards used by rating services such as Canada Select.
PEI Waterfront Real Estate Development
PEI waterfront real estate is in scarce suppply everywhere, but PEI waterfront real estate is still an available commodity and at a price that makes it a "steal" compared with other locales such as Chester and Mahone Bay in Nova Scotia. Investors can still find large tracts of waterfront land to develop for subdivisions. Local developers have been creating cottage lot subdivions for some time and some of the new developments afford large lots and a plethora of green space and nature, such as Sunbury Cove and Sunset Dunes. If you have the money you could also develop a piece of PEI waterfront real estate and create a lucrative investment as well as a place that families will call home. It is recommended that unlike some developers, who are really only speculating on the future value of their PEI property, that you have the capital to put in roads and services in advance of selling.
Investment in Summer Homes and Cottages on PEI
PEI real estate for the summer visitor, including summer homes and cottages, represents a multi-purpose investment. You and your family can enjoy the property as a place to vacation in the summer while renting it to other vacationers when not in use. Your vacation PEI real estate also represents an equity building tool and an investment for your retirement or to pass along to other family members. If you are planning to rent your summer home to other holidayers when not in use you might consider a property management company to keep the property maintained and ready for visitors. Some property managers also take an interest in marketing your property and securing bookings. As a non-resident of Prince Edward Island you should be sure that all PEI real estate contracts should have the subject added, “subject to IRAC approval”. This is particulary important if the property is waterfront as there are restrictions on the amount of land that a non-resident may own. However it is still very easy for you to own PEI real estate.
Do you have a craft (or other tourist business) you wish to pursue?
If so, crafts and arts are very much in demand on PEI. You can look at country real estate on PEI and find a charming property that will accomodate both your business and your home. The country roads and drives provide a steady stream of visitors and potential customers. The PEI government has the “blue sign” program, a system of directional sugns that will help tourists find your business.
The PEI real estate market, while not subject to the highs of other markets, is also not prone to the lows either. It is an ideal market for the small to medium range real estate investor and a great training ground for the novice. Call me to discuss your needs and I can help you enjoy the island and own your very own piece of PEI real estate.