Frequently Asked Questions

From curb appeal to pricing, answers to your pressing Guelph real estate questions.
1. What should a first-time home buyer consider when getting in the market?

As a first-time homebuyer in Guelph, it’s essential to: 

  • Understand Your Budget: Before house hunting, review your financial status and understand how much you can afford. 
  • Location Prioritization: Guelph has diverse neighbourhoods. Decide which areas suit your lifestyle and needs. 
  • Pre-Approval: Obtain a mortgage pre-approval. It not only gives you a clear price range but also strengthens your offer in a competitive market. 
2. What time of year is best to buy and sell?

Traditionally: 

  • Best Time to Sell: Spring is a popular time, especially around April and May. Homes in Guelph often present well in the spring with gardens blooming and longer daylight hours. 
  • Best Time to Buy: Fall can offer some good deals, especially as sellers who listed in peak season may be more willing to negotiate. However, each year can differ due to various factors, so it’s wise to consult with us for current market insights. 
3. What’s the deal with down payments?

In Canada, a down payment is a percentage of the property’s purchase price paid upfront. While the minimum can be as low as 5%, a 20% down payment is ideal because it: 

  • Avoids the need for mortgage loan insurance. 
  • Reduces your monthly mortgage payment. 
4. Mortgage basics, how does that work? Loan insurance etc.

A mortgage is essentially a loan from a bank or lender to buy a property. 

  • If your down payment is less than 20% of the property price, you’ll typically need a mortgage loan insurance, such as that offered by CMHC. This protects the lender in case of default. 
  • The mortgage’s interest rate and terms can vary, so shop around or consult with a mortgage broker. 
5. What other costs do I have for closing?

When closing a sale in Guelph, anticipate: 

  • Land Transfer Tax: This tax is based on the property’s purchase price. 
  • Legal Fees: Costs for attorney services to facilitate the transaction. 
  • Home Inspection: It’s advisable to have a property inspected for any hidden issues, which has an associated fee. 
6. What price should I sell at?

Pricing your home accurately is critical. Factors to consider include: 

  • Market Research: Current selling prices of similar properties in Guelph. 
  • Home Value: Age, size, condition, upgrades, and unique features of your property. 
  • Selling Goals: Your timeframe and flexibility. 
  • For an in-depth analysis and pricing strategy, reach out to The Dodd Team. 
7. When should I lower price?

Consider a price reduction if: 

  • You receive no offers or showings after several weeks on the market. 
  • Feedback from potential buyers indicates the price is a deterrent. 
  • Market conditions change, with more supply than demand. 
8. Should I lower price to sell faster?

Lowering the price can attract more buyers. However, ensure the reduction still aligns with the home’s value and your financial goals. Sometimes, a minor adjustment or a different marketing strategy can also make a difference.

9. Should I sell before buying?

Selling your current home before buying a new one can simplify financial arrangements and strengthen your buying position. However, it may also mean needing temporary housing. Consider your finances, the Guelph market conditions, and consult with us to plan the best sequence for you.

10. What's the deal with curb appeal?

Curb appeal is the first impression buyers get of your home. In Guelph, where seasonal changes can significantly impact a property’s appearance, enhancing curb appeal can increase interest, drive more showings, and potentially add to your home’s value. Simple measures like landscaping, fresh paint, or a clean driveway can make a huge difference.

11. Does credit score affect mortgage rate?

Absolutely. Lenders view a higher credit score as a sign of financial responsibility, making you a lower-risk borrower. Consequently, you might qualify for a better mortgage rate, which can save substantial money over the life of the loan.

12. What do I need to know about home inspections?

Home inspections provide a detailed examination of a property’s physical structure and integral systems. For those looking to buy in Guelph, an inspection:

  • Uncovers hidden issues, ensuring you’re making a well-informed purchase. 
  • Can serve as a tool in negotiations, either by adjusting the price or asking for repairs. 
  • Offers a deeper understanding of the property’s condition, giving potential buyers greater confidence in their decision. 

For sellers, considering a pre-listing inspection can preemptively identify and address problems, facilitating a smoother and more transparent transaction.